Unrestricted Accounting

MSC09 5222
1 University of New Mexico
Albuquerque, NM 87131

Physical Location:
1650 University Blvd NE
Second Floor, Suite 2700

Phone: (505)272-6266
Fax: (505)272-0159

LEARN

The following are LEARN presentations put on by the staff of HSC Unrestricted Accounting and other associated departments/organizations.  These presentations are designed to provide you with essential information on our business practices that will assist in making the unrestricted accounting process as painless as possible.  LEARN presentations are scheduled at various times throughout the year, and you may attend them without advance registration.  However. the items below are the presentations and handouts for LEARN presentations that have been conducted previously.  Feel free to peruse them and become familiar with the material -- many of the answers you are looking for are likely contained within them.

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These are open workshops. No advance registration is required.
Call Terry Shoebotham at 272-0865 for more information.

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Chrome River Routing Queues and Approval Process

Presenter: Laura Putz
Date: 10-11-2017

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You Make the Call

Presenter: Laura Putz
Date: 03-22-2017

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Chrome River Tips and Tricks

Presenter: Laura Putz
Date: 02-23-2017

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Chrome River Beginning the Journey

Presenter: Jason Galloway
Date: 01-31-2017

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Department ConsiderationsRoles and ResponsibilitiesStudent/Non-employee ReimbursementDelegatesPre Approval for TravelApprovalsStaff SupportExecutive ReportingReport Naming ConventionsEstablish PCard reconciliation expectationsDepartment ChampionsTrainingDepartmentalEODJob AidsReference GuidesLog inDashboardExpense ReportSub MenusExpense line item dataPer Diem AdjustmentsPCard ReconciliationReceipt AttachmentsApprovalsPrepare to LaunchOctober 1, 2016ChromeRiver

Hot Topics in HSC Contract and Grant Administration

Presenter: Jason Galloway, Associate Controller of HSC Contracts and Grants
Date: 11-15-2016

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Department ConsiderationsRoles and ResponsibilitiesStudent/Non-employee ReimbursementDelegatesPre Approval for TravelApprovalsStaff SupportExecutive ReportingReport Naming ConventionsEstablish PCard reconciliation expectationsDepartment ChampionsTrainingDepartmentalEODJob AidsReference GuidesLog inDashboardExpense ReportSub MenusExpense line item dataPer Diem AdjustmentsPCard ReconciliationReceipt AttachmentsApprovalsPrepare to LaunchOctober 1, 2016ChromeRiver

Chrome river prepare to launch

Presenter: Laura Putz, Joyce Chavez, Travis Barnette
Date: 08-25-2016

Presentation - PowerPoint
Presentation - PDF

Department ConsiderationsRoles and ResponsibilitiesStudent/Non-employee ReimbursementDelegatesPre Approval for TravelApprovalsStaff SupportExecutive ReportingReport Naming ConventionsEstablish PCard reconciliation expectationsDepartment ChampionsTrainingDepartmentalEODJob AidsReference GuidesLog inDashboardExpense ReportSub MenusExpense line item dataPer Diem AdjustmentsPCard ReconciliationReceipt AttachmentsApprovalsPrepare to LaunchOctober 1, 2016ChromeRiver

Accounting For State Appropriations

Presenter: Desiree Gathings
Date: 02-09-2016

Presentation - PowerPoint
Handout - PDF

  Accounting for State Appropriations Prepared by Desiree Gathings 2/9/16 TABLE OF CONTENTS STATE APPROPRIATIONS 4 RECURRING VERSUS NON RECURRING FUNDS 4 REVERSION OF FUNDS 5 BUDGETING ISSUES 5 FACILITIES & ADMINISTRATIVE COSTS (F&A) 5 SPENDING STATE APPROPRIATIONS 6 COST SHARE 6 SPENDING GUIDELINES 6 PAYROLL FRINGES 6 STATE REPORTING EXPLAINED 7 FINANCIAL REPORTING ISSUES 7 APPENDIX 1-PROGRAM PERFORMANCE REPORT INSTRUCTIONS 8 APPENDIX 2-HED CLOSING REPORT FY15 9 APPENDIX 3-HED CLOSING FORM FY15 12 APPENDIX 4- HED OPENING REPORT FY17 17 APPENDIX 5- HED OPENING FORM FY17 19 APPENDIX 6-HED DEFINITIONS 25 APPENDIX 7-STATE GUIDELINES 26 APPENDIX 8-PROVIDING MEALS 30 APPENDIX 9-BUDGET OFFICE CONTACTS 35 MAIN CAMPUS 35 HEALTH SCIENCES CENTER 35  STATE APPROPRIATIONS State Appropriations at UNM are funds received from the state for specific purposes.  This funding comes with a variety of guidelines, and is subject to laws that control how it is spent. Not all State Appropriations funding has the same type of guidelines. Instruction and General (I & G) appropriations are for education and the support of education.  Other state appropriations are for other, specific projects, and may have different guidelines. As a general rule, state appropriations are considered unrestricted funds.  This means the appropriation is not set up in the accounting system with a Fiscal Monitor.  Even though the appropriations are considered unrestricted for accounting purposes, there are restrictions placed on the usage of the funds.  The Main & Branch Campus budgets include $222 million dollars in state appropriated funds for fiscal year 2015-2016.  Of this, $213 million is I&G funds, or 96% of the Main and Branch Campus appropriations.  The HSC budgets include $99 million dollars of state appropriations of which $66 million, or 67%, is I&G funds. State Appropriations for 2015-2016 Fiscal Year Instructional and General Portion Instructional and General Percentage Main Campus $201,101,300 $ 192,500,200  96% Health Sciences Center $ 99,368,700 $    66,216,200  67% Branch Campuses $  20,972,000 $    20,972,000 100% Total UNM $321,442,000 $ 279,688,400  87% Appropriations that are not I&G are for Research and Public Service Projects, and are referred to as RPSPs.  RPSPs and some I&G projects are line items in the General Appropriations Act.  Each of these line item programs have special reporting requirements and must be separately tracked.  There are three types of state appropriations: recurring operating funds, non-recurring operating funds, and capital funds.  When you receive new appropriations, contact your respective Budget Office (see Appendix 9) for guidance on setting up the appropriation in Banner. RECURRING VERSUS NON RECURRING FUNDS As a general rule, the section of the general appropriation act where your appropriation resides dictates if your appropriation is recurring or non-recurring. If your appropriation is non-recurring, you may have only one year in which to spend the funds. Your budget office can assist you in determining the length of time you have to spend your non-recurring appropriation.  Be aware, even if your appropriation is a ‘recurring’ appropriation a future legislature could eliminate your appropriation as one legislature cannot commit future legislatures to expenditures.  Additionally, the Governor of New Mexico has line-item appropriation veto authority. It is possible for the legislature to fund an appropriation and for the Governor to remove it via line-item veto. REVERSION OF FUNDS Occasionally the state will take back (revert) some of the money that was appropriated for a program.  The guidelines on when this will occur are complex and may vary from year to year.  A program may have to return unspent or unencumbered funds.  If you have specific questions, please contact your Budget Office (see Appendix 9). BUDGETING ISSUES Departments can help keep State Appropriations properly reported.  A unique program code is used for all state appropriations at the Health Sciences Center.  If a department wishes to change the indices for state appropriated programs, it should contact the appropriate budget office prior to any modifications.  The funds must stay in the correct program code when they are adjusted.  Ideally, the funds should stay in the same index for the duration of the fiscal year. When State appropriations are adjusted during legislative sessions, the budget office is the area that tracks the changes.  Upon the conclusion of the bill signing period and after the Higher Education Department finalizes the compensation distribution, the budget office provides detailed information to UNM Banking to ensure your indices receive the appropriate distribution amounts from the state. Adjustments can include, but are not limited to: compensation increases, operating expense increases, programmatic cuts, and elimination of the appropriation.  Additionally, the legislature will sometimes “sand” or “shave” appropriations.  Sanding and shaving are across the board cuts to all appropriations within the particular section of the appropriations act.  Typically sandings are small cuts.  An example of a sanding is a .01% across the board reduction in appropriations.  A shaving is a large cut, such as a 5% across the board reduction in appropriations. FACILITIES & ADMINISTRATIVE COSTS (F&A) At this time, F&A expense is only assessed on HSC appropriations.  New recurring state appropriations to HSC are assessed 6% F&A of which 5% is retained at the HSC and 1% is transferred to Main Campus.  For more specific information, contact your Budget Office (see Appendix 9). F&A is not charged on Main Campus or Branch Campus state appropriations at the present time. SPENDING STATE APPROPRIATIONS State appropriations must be spent within the guidelines given by the state, often referred to as legislative intent. When spending state appropriations, it is important to be aware of the associated guidelines and restrictions.  General State guidelines are found in Appendix 7. COST SHARE Generally Cost Share from state appropriations is not allowed.  Cost Share expense may be permissible if it agrees with the legislative intent of the appropriation.  If Cost Share expense is being contemplated, contact your Budget Office for more information.  Cost Share expense is unusual with State Appropriations funding. SPENDING GUIDELINES Some general accounting guidelines apply to State Appropriations spending.  These are particularly noteworthy: * Alcohol cannot be charged to an index with State Appropriations funding.  * Lobbying costs cannot be charged to an index with State Appropriations funding. PAYROLL FRINGES State appropriations can be broken down as follows: State Appropriations  I&G funding: For Non-Self Supporting Instructional and General Units (or units with I&G Pooled revenue sources posted to account code 1640) use Pooled Fringe Benefits. For Self Supporting Instructional and General Units (or units with revenue sources posted to account codes 0720 or 0740) Fringe Benefits are budgeted and charged to the same index as the labor expense.   Line Item Appropriations: May be in any program code based on the purpose or intent (units with revenue sources post to account codes 0720 or 0740) Fringe benefits are budgeted and charged to the same index as the labor expense. Most I&G fringe benefits are in the Non-Self Supporting I&G category on both campuses.  When an employee is paid with these I&G funds, the payroll fringe expense does not hit the same index as the employee’s salary, but is expensed to a central pooled I&G index. When an employee is paid with self supporting I&G funds, the payroll fringe expenses will be directly charged to the index charged the salary expense. On the rare occasions an I&G program receives a line item appropriation, the budget office requests an estimated program budget.  The fringe benefits necessary for the salary expenses are placed into the pooled fringe benefit indices at HSC.  Main campus line item appropriations that fall within I&G  are treated as self-supporting programs, where the fringe benefits are expensed in the same index as the labor expense. When an employee is paid with a non I&G special line item appropriations, the payroll fringe expense is budgeted and expensed to the same index as the employee’s salary.   STATE REPORTING EXPLAINED Programs that receive line item appropriations must provide programmatic data to the state.   This process is coordinated by the Higher Education Department (HED).  The data must be updated annually on forms provided by the HED.  The HED has made changes to the forms and reporting requirements over the years and may change again at any time.  The University Budget Offices work proactively to ascertain when changes will be implemented in order to inform the programs of upcoming changes in reporting requirements and deadlines. For the last two years, existing and continuing programs have been required to complete project close forms for the prior fiscal year and project start forms for the next fiscal year.  New programs complete only the project start forms.  Examples of some these forms and related definitions are in Appendices One through Five. In addition to the required yearly reporting, programs with state appropriated line items are subject to additional review by the Legislative Finance Committee (LFC), Department of Finance Administration (DFA), and HED.  The reviews can be programmatic, financial, or both.  They can occur at any time and the format will vary. FINANCIAL REPORTING ISSUES UNM has set up their accounting system with the complex State reporting requirements in mind.  When the correct index is used, with the correct program and fund code having been assigned, the reports required by the state are relatively easy to compile. APPENDIX 1-PROGRAM PERFORMANCE REPORT INSTRUCTIONS 1. The following forms and instructions are from the Higher Education Department (HED): Please submit these reports to the HSC Budget Office by July 15th 2. The follow required forms are provided in Word and Excel formats:  > HED Closing Report FY15  Includes: Program Overview, Objectives, Results and Next Steps  (Word document -- narrative format) > HED Closing Form FY15  Includes: Program Objectives, Performance Measures, Targets and Results, Budget to Actuals Comparison, and Budget History  (Excel workbook)  > HED Opening Report FY17– Includes: Program Overview, Justification, and Expected Outcomes  (Word document -- narrative format) > HED Opening Form FY17 – Includes: Project Categorization, Program Objectives, Performance Measures, Targets, Expected Results and Budgets (Excel workbook)  ** Please note some items are already completed for you or indicate that the HSC Budget Office will complete them for you prior to submission to the HED. 3. All Programs must have clearly defined missions, goals, objectives, performance measures, and targets – measure related forms are provided in Excel form template and include: > Project Close-out Objectives Sheet > Project Close-out Performance Measurement Sheet > Project Start Objectives Sheet > Project Start Measurements Sheet Institutions are required to submit annual program performance reports on progress made in meeting their target measures related to their goals and objectives as well as the timely expenditure of funds.  Certain appropriations must be reverted to the General Fund if not expended by the end of the specified fiscal year, unless indicated otherwise in the appropriating legislative bill. 4. The above reports and forms are to be submitted to the HSC Budget Office no later than July 15th, via email as electronic file(s) to dgathings@salud.unm.edu Questions? Contact Desiree Gathings, via email dgathings@salud.unm.edu or via phone 505-272-0904, or Vanessa Hawker, via email vhawker@salud.unm.edu  or via phone 505- 272- 2584.   APPENDIX 2-HED CLOSING REPORT FY15 APPENDIX 3-HED CLOSING FORM FY15 The above is four pages of a twelve page workbook.  Contact the HSC Budget Office for the complete form.  For HSC, this form comes from the HSC Budget Office.  For Main Campus, this form comes from the Government Relations Office APPENDIX 4- HED OPENING REPORT FY17 APPENDIX 5- HED OPENING FORM FY17 The above is five pages of a thirteen page workbook.  Contact the HSC Budget Office for the complete form.  For HSC, this form comes from the HSC Budget Office.  For Main Campus, this form comes from the Government Relations Office. APPENDIX 6-HED DEFINITIONS APPENDIX 7-STATE GUIDELINES Financial Control Division Central Accounting System - White Paper Revised: July 2002 For the latest information, see http://www.dfafcd.state.nm.us Authority and the Propriety of Expenditures Table of Contents Introduction....................................................................................................2 Criteria for Determining the Propriety of an Expenditure..........................2 1. Constitutional, Statutory, and Contractual Mission..............................2 2. Public Benefit and Purpose.....................................................................3 3. Necessity...................................................................................................3 4. Appropriation, Budget, and Available Resources.................................4 Conclusion...................................................................................................5   DFA Section 6-5-6, NMSA, 1978, as amended, requires the New Mexico Department of Finance and Administration’s Financial Control Division (FCD) to determine that all expenditures are for a purpose authorized by law. This white paper delineates the four criteria FCD uses to make that determination. Financial Control Division DFA Introduction The Financial Control Division of the Department of Finance and Administration must determine that all expenditures are for a purpose authorized by law (Section 6-5-6, NMSA 1978). This white paper delineates the four criteria FCD uses to make that determination. To simplify the information below, this paper uses the term “proper” to describe an expenditure authorized by law. For the same reason, it uses “agency” to refer to state agencies, departments, institutions, boards, bureaus, commissions and committees of the government of the State of New Mexico. Criteria for Determining the Propriety of an Expenditure  1. Constitutional, Statutory, and Contractual Mission This criterion mandates that an agency’s expenditures be consistent with the agency’s mission. The State of New Mexico’s constitution and statutes, together with legally authorized contractual commitments, define an agency’s mission. They do this by delineating the agency’s functions, responsibilities, and duties. For example, the Department of Finance and Administration’s mission includes financial control. Section 6-5-2, NMSA, 1978, as amended, creates a division to carry out that mission and describes the division’s functions, responsibilities, and duties as: The financial control division of the state department of finance and administration shall maintain a central system of state accounts, and shall devise, formulate, approve and control the accounting methods and procedures of all state agencies. White Paper 2 Authority and Propriety of Expenditures Financial Control Division DFA Given this mission, if the division were to publish accounting procedure manuals to distribute to agencies, the expenditure would be “proper.” On the other hand, expenditures to build a highway would not be. In addition to the legislation that creates an agency, other legislation can contribute to the definition of an agency’s mission. For example, an appropriation act can include a provision that adds to an agency’s mission. Using the same example above, if the Department of Finance and Administration were to receive an appropriation to build a highway, its mission, to the extent of the appropriation, would include building a highway. Contractual agreements, if authorized by law, can also contribute to the definition of an agency’s mission. Grants from private organizations are one example.  2. Public Benefit and Purpose This criterion requires expenditures to contribute to an agency achieving its constitutional, statutory, or contractual mission. Expenditures can contribute in two ways: 1) by serving a “public purpose,” and 2) by providing a “public benefit.” If expenditures aid or promote progress towards an agency achieving its constitutional, statutory, or contractual mission, the expenditures are for a public purpose. If expenditures result in an agency achieving that mission (either in whole or in part), the expenditures provide a public benefit. For example, if the mission of an agency includes providing social worker services to the needy, expenditures to recruit a social worker are for a public purpose—they aid the agency’s progress toward achieving its mission. On the other hand, expenditures for a social worker’s salary would provide a benefit—they result in the agency achieving its mission. Expenditures must always be for a public purpose. Expenditures may or may not provide a public benefit. However, if they do not provide a public benefit, FCD may require an agency to document in writing why the expenditures are necessary (see “necessity” criteria below). Furthermore, if the public purpose, public benefit, or both are not clear to FCD, FCD may require an agency to provide written clarification. It will use this clarification to make a final decision on whether to approve the expenditure. However, if FCD concludes that an expenditure, by its very nature, does not provide a public purpose or benefit, FCD will not seek clarification and will simply disapprove the expenditure. Examples of this type of expenditure include reimbursement of an employee for alcoholic beverages the employee has consumed, White Paper 3 Authority and Propriety of Expenditures Financial Control Division DFA or the cost of items (pictures of the employee, gifts, etc.) that will be used to promote (advertise) the employee.  3. Necessity This criterion focuses on making the best choice between options. When different means of achieving a mission exist, this criterion requires an agency to choose the means that will still provide, or contribute to providing, the public benefit desired but will do so for the least amount of expenditure possible. For example, Agency X can either rent a training facility at a hotel for a cost of $2,000 or use a training facility owned by the State for the cost of a $25 cleaning fee. Assuming the Agency can provide the training effectively at either site, this criterion requires Agency X to use the facility costing $25.  4. Appropriation, Budget, and Available Resources This criterion requires that the purpose of expenditures be consistent with their related appropriation, that total expenditures be within the budget established by law, and that the budget established by law be supported by actual resources, including cash. Appropriation: An “appropriation” from the Legislature is the authority for an agency to make expenditures for a given purpose. Depending on an agency’s statutory mission, this purpose usually falls within one of the following broad categories:  ???Legislative  ???Judicial  ???General control  ???Regulation, licensing and economic development  ???Culture, recreation and natural resources  ???Health and human resources  ???Public Safety  ???Transportation and Highways  ???Education  ???Higher Education  ???Public School Support The purpose of expenditures must be for the purpose intended by the appropriation. For example, an appropriation made for the purpose of transportation and highways should not be expended on health and human services. In addition to the broad categories above, the Legislature usually divides the purpose of appropriations into the following appropriation units:  ???Personal Services and Employee Benefits White Paper 4 Authority and Propriety of Expenditures Financial Control Division DFA  ???Contractual Services  ???Other When the Legislature provides an appropriation to an agency, unless specifically stated otherwise in the appropriation act, the purpose intended by the appropriation is the constitutional and statutory mission of the agency. If the Legislature restricts the appropriation to the appropriation units listed above, the purpose of the appropriation is also defined by the amount the legislature allocates to those units. Under this criterion, contractual commitments must be consistent with the authority given an agency by law. There are no exceptions. Budget and Available Resources: Budget is the bridge between appropriations and resources. The existence of a budget helps ensure that appropriations are supported by resources (i.e., by cash and earned revenue.) Section 6-3-7, NMSA, 1978 prohibits an agency from making expenditures that are not authorized by an approved budget. This criterion requires an agency to stay within its budget when making expenditures. In addition, it requires an agency to request a Budget Adjustment Request and reduce its budget if the agency’s projected revenues are not meeting projections. Conclusion Unless a proposed expenditure meets all of the four criteria above, it should not be incurred. APPENDIX 8-PROVIDING MEALS Financial Control Division Central Accounting System White Paper Published: July 12, 2002 For the latest information, see http://www.dfafcd.state.nm.us Providing Meals and State Owned Vehicles To Employees Table of Contents Introduction................................................................................................2 Meals...........................................................................................................3 State Owned Vehicles................................................................................3 Financial Control Division DFA DFA This white paper is a product of the New Mexico Department of Finance and Administration’s Financial Control Division. It is a “key” for understanding finance and accounting related issues and does not supersede statute or the rules and regulations of the Department of Finance and Administration and the General Services Department. Financial Control Division DFA Introduction        Circumstances can sometimes warrant a state agency1 providing an employee with a meal or the use of a state owned vehicle. This white paper addresses when it is proper to do so and when it is not.2        Depending on the circumstances, when an agency provides a meal to an employee or allows the employee to use a state owned vehicle, the meal or use might be a fringe benefit. A fringe benefit is the equivalent of money.        Giving an employee a fringe benefit increases his or her compensation. The maximum amount an agency may compensate an individual employee—this includes elected officials— is established by law (either by the State’s constitution, by statute, or by rule). Depending on the circumstances, an agency that adds a fringe benefit to the maximum compensation allowed by law violates Section 30-23-2, NMSA 1978, which states in part: Whoever commits paying or receiving public money for services not rendered is guilty of a fourth degree felony.        Therefore, as a general rule, an agency should not provide meals to employees or allow employees to use state owned vehicles, if it results in compensation. 1For purposes of this white paper, “agency” means any department, institution, board, bureau, commission, district, or committee of the government of the State of New Mexico. 2The Per Diem and Mileage Act, the Transportation and Services Act, and the New Mexico Administrative Code (Title 1, Chapter 5, Part 2 and Title 2, Chapter 42, Part 2) also address the propriety of providing meals and State owned vehicles to employees. To ensure a thorough understanding of this subject, the reader of this white paper should also read the acts and code.   Meals De Minimis Meals        De minimis meals are meals that have little value, taking into account how frequently an agency provides them to an employee. Examples include the following: 1) coffee, doughnuts, or soft drinks served at a formal training seminar; 2) meals provided by a vendor and included as part of a registration fee for a seminar, forum, conference, etc.; or 3) an occasional meal provided to an employee, at the employee’s work place— for the convenience of the agency— to enable the employee to work overtime.        If an agency is providing meals more than four times a fiscal year to an employee, it may be frequent enough that the meals would not qualify as de minimis. Therefore, an agency must obtain written permission from the Financial Control Division of the Department of Finance and Administration to go beyond four meals a fiscal year, even if each individual meal is considered de minimis. Other Types of Meals        There are limited circumstances under which an agency may purchase a meal for an employee. First, a meal may be provided to an employee who is traveling under the provisions of the Per Diem and Mileage Act.        Second, a meal may be provided to an employee when there are not sufficient eating facilities near the work site, provided that the meal is for the convenience of the agency and is provided during working hours. An example would be a meal provided to an employee who is responding to a disaster or emergency and cannot leave his or her post of duty.        Third, a “business” meal, but only when entertainment expenses are specifically authorized by the Legislature. An example of a business meal would be a meal for an economic          development employee using his or her attendance at a luncheon as an opportunity to promote New Mexico as a business location.        An example of a specific authorization by the Legislature would be an appropriation that includes language authorizing entertainment expenses. Absent specific language in an appropriation, specific language in the budget request or recommendation that is the basis for the appropriation will suffice. However, the “intent” of a budget request, a budget recommendation, or an appropriation would not.        An agency should not purchase employees meals as a means of promoting goodwill or boosting employee morale. This also applies to de minimis meals. State Owned Vehicles        An agency should not allow an employee the personal use of a state owned vehicle. There are no exceptions to this. (This does not mean that an employee cannot render emergency aid or assistance to any person.)        If an employee is traveling, as defined by the Regulations Governing the Per Diem and Mileage Act, use of the vehicle for business purposes would include the employee using the vehicle to reach the destination of the trip and to obtain food, shelter, and the other necessities needed to maintain his or her health while traveling. Use of the vehicle to enjoy the local tourist attractions would not be a business use. Neither would be traveling sixty miles to have dinner when a restaurant is available nearby.        In general, an agency should not allow an employee to use a state owned vehicle to commute between his or her designated post of duty and residence. The three exceptions to this, which are business use of a vehicle, are as follows: 1) a public safety employee commuting in a clearly marked police or fire vehicle, when the commuting is for the convenience of the State (e.g., the officer must have his or her vehicle with him or her at all times to respond immediately to emergency calls); 2) a law enforcement officer commuting in an unmarked vehicle, when the commuting is for the               convenience of the State; or 3) an employee commuting in a vehicle to safeguard the vehicle after working hours.        For item 3 in the previous paragraph, whether voluntary or required, the agency must include the value of using the vehicle in the employee’s wages. Consistent with the Internal Revenue Service’s guidelines, the value is $1.50 one way. However, if the employee is an elected official or highly compensated employee (an employee who received over $90,000 in compensation in the prior calendar year), the agency must instead use the annual lease value from the table below:          Annual          Automobile’s Lease          Cost Value          $0 to 999.........................................................................$600          1,000 to 1,999...................................................................850          2,000 to 2,999................................................................1,100          3,000 to 3,999................................................................1,350          4,000 to 4,999................................................................1,600          5,000 to 5,999................................................................1,850          6,000 to 6,999................................................................2,100          7,000 to 7,999................................................................2,350          8,000 to 8,999................................................................2,600          9,000 to 9,999................................................................2,850          10,000 to 10,999............................................................3,100          11,000 to 11,999............................................................3,350          12,000 to 12,999............................................................3,600          13,000 to 13,999............................................................3,850          14,000 to 14,999............................................................4,100          15,000 to 15,999............................................................4,350          16,000 to 16,999............................................................4,600          17,000 to 17,999............................................................4,850          18,000 to 18,999............................................................5,100          19,000 to 19,999............................................................5,350          20,000 to 20,999............................................................5,600          21,000 to 21,999............................................................5,850          22,000 to 22,999............................................................6,100          23,000 to 23,999............................................................6.350          24,000 to 24,999............................................................6,600          25,000 to 25,999............................................................6,850          26,000 to 27,999............................................................7,250          28,000 to 28,999............................................................7,750          30,000 to 31,999............................................................8,250          32,000 to 33,999............................................................8,750          34,000 to 35,999............................................................9,250          36,000 to 37,999............................................................9,750          38,000 to 39,999..........................................................10,250          40,000 to 41,999..........................................................10,750          42,000 to 43,999..........................................................11,250          44,000 to 45,999..........................................................11,750          46,000 to 47,999..........................................................12,250          48,000 to 49,999..........................................................12,750          50,000 to 51,999..........................................................13,250          52,000 to 53,999..........................................................13,750          54,000 to 55,999..........................................................14,250          56,000 to 57,999..........................................................14,750          58,000 to 59,999..........................................................15,250        The agency may prorate the annual lease value by multiplying the value by a fraction: the numerator being the               number of days the vehicle is available to the employee and the denominator being 365. For example, if a vehicle costing $25,000 is available to an employee for 10 days in a given pay period, the prorated annual lease value is $187.67 ($6,850 times 10/365). The agency must include the $187.67 in the employee’s wages. (To do this, contact the Central Payroll Bureau, Financial Control Division, for instructions.)        An agency must receive permission, in writing, from the Financial Control Division of the Department of Finance and Administration before requiring or allowing an employee to take an automobile home to safeguard it. The Financial Control Division will require the agency to justify its action in terms of cost effectiveness, given the options available for protecting the vehicle. In order to ensure that protection of the vehicle is in fact the agency’s goal, the Division will also scrutinize the agency’s choice of the employee who will be taking care of the vehicle. APPENDIX 9-BUDGET OFFICE CONTACTS MAIN CAMPUS NAME PHONE EMAIL POSITION CONTACT FOR Mathew Munoz 277-1670 mmunoz67@unm.edu Government Relations Specialist Performance questions Regina Dominguez 277-0520 rmunoz@unm.edu Budget Officer Budget questions HEALTH SCIENCES CENTER NAME PHONE EMAIL POSITION CONTACT FOR Desiree Gathings 272-0904 DGathings@salud.unm.edu HSC Budget Office Financial Analyst Performance and budget questions Joseph Wrobel 272-5664 Jwrobel@salud.unm.edu HSC Budgets Administrator Budget questions Julie Alberti 272-5492 JAlberti@salud.unm.edu HSC Budgets Administrator  Budget questions Vanessa Hawker 272-2584 VHawker@salud.unm.edu Senior Strategic Advisor, HSC All other questions 2 1                                                                                                                                                                                                         

Understanding Endowed & Non-Endowed Spending Indices

Presenter: Terry Shoebotham
Date: 11-17-2015

Presentation - PDF
Handout - PDF

**START HANDOUT** Understanding Endowed & Non Endowed Spending Indices Presented by Terry Shoebotham Business Management Specialist November 17, 2015 (This information has been updated from a similar document prepared in 2009) 2 3 Table of Contents GIFTS TO THE UNIVERSITY .....................................................................................................................................5 UNM FOUNDATION.......................................................................................................................................................6 UNM FOUNDATION SURCHARGE ......................................................................................................................................6 DONOR RECEIPTS ...........................................................................................................................................................6 RESPONSIBILITY TO DONOR ..............................................................................................................................................6 FUND-RAISING PROGRAMS ..............................................................................................................................................6 FOUNDATION FUNDS ......................................................................................................................................................7 Endowed funds......................................................................................................................................................8 Non Endowed funds..............................................................................................................................................8 Foundation Discretionary funds............................................................................................................................8 FINDING ALL YOUR FUNDS.....................................................................................................................................9 REPORTING...................................................................................................................................................................9 ENDOWED FUNDS................................................................................................................................................ 12 DEFINED.....................................................................................................................................................................12 IDENTIFYING CORPUS FUNDS & INDICES ...........................................................................................................................12 NON ENDOWED FUNDS ....................................................................................................................................... 15 DEFINED.....................................................................................................................................................................15 BANNER AND NON ENDOWED FUNDS ..............................................................................................................................15 GIFTS VERSUS CONTRACTS AND GRANTS...........................................................................................................................16 APPENDIX 1 - ENDOWMENT GIFT AGREEMENT ................................................................................................... 18 APPENDIX 2 - FUND ESTABLISHMENT FORM........................................................................................................ 20 APPENDIX 3 - ENDOWED AND NON ENDOWED COMPARED................................................................................ 22 APPENDIX 4 - RELATED POLICIES.......................................................................................................................... 22 APPENDIX 5 - ENDOWMENT MINIMUMS............................................................................................................. 23 APPENDIX 6 - TERM DEFINITIONS ........................................................................................................................ 24 APPENDIX 7 - FOUNDATION REPORTS ................................................................................................................. 25 APPENDIX 8 - ENDOWED & NON ENDOWED BANNER REPORTING ...................................................................... 28 APPENDIX 9 – DISTINGUISHING BETWEEN GIFTS, GRANTS AND CONTRACTS ...................................................... 31 4 5 GIFTS TO THE UNIVERSITY Private support is extremely important to the teaching, research and public service mission of the University. Through private support, the University can enhance current programs and develop resources to support future programs. To ensure effective development and management of private support and compliance with Internal Revenue Service (IRS) regulations, the University coordinates all efforts to obtain and increase private support through the University of New Mexico Foundation, a non-profit corporation. The Foundation was chartered by the University of New Mexico Board of Regents in 1979 to solicit, accept, and manage private contributions for the purpose of promoting the educational, research, and service commitments of the University. The University staffs the Foundation under the oversight of the Foundation Board of Trustees and the President of the UNM Foundation. All gifts received by the University, including gifts to colleges, schools, departments, and/or programs, must be reported to the UNM Foundation. Policy 1030 applies to the receipt and investment of all gifts from private sources made to benefit the University's education, research, or public service mission irrespective of who actually receives the contribution. Gifts may come in many forms including:  cash, checks, and credit card payments;  securities;  real estate;  bequests, wills, trusts, and other forms of planned gifts;  art and collectibles;  equipment, supplies, and other types of tangible personal property;  intangible gifts such as copyrights, royalties and easements; and  private grants. IRS regulations now require donors to have receipts in order to deduct charitable gifts on their tax returns. UNM Foundation is responsible for mailing these receipts to donors. Donor gifts must be reported to the Foundation in order for these receipts to be generated. This policy does not apply to grants from governmental agencies or to contracts from governmental agencies, corporations, or other entities for research or service projects where the funding agency initiates the project, specifies processes, methods, and benchmarks, and/or derives direct substantial economic benefits from the results. Such contracts are handled by Sponsored Projects on Main or HSC Campus. 6 UNM FOUNDATION The UNM Foundation is an entity separate from UNM, established in 1979. The UNM Foundation is a 501c3 organization whose mission is to increase private gifts for UNM by developing long-term relationships with donors and matching their interests with the University’s priorities, creating unique opportunities for our students, faculty and alumni. The UNM Foundation website may be found at https://www.unmfund.org . UNM FOUNDATION SURCHARGE UNM Foundation is supported in part by charging a Consolidated Investment Fund (CIF) fee. The remainder of their support is provided by a cost distribution to UNM organizations based on their Endowed Corpus Balances at year end. Unrestricted Accounting HSC distributes these costs via FUPLOAD quarterly to the indices provided by the departments for accumulating these costs. DONOR RECEIPTS An official University/UNM Foundation receipt is issued to the donor at the time of the gift or as soon as possible after receipt of the gift. For donations for which the donor receives a benefit, the Foundation will note the value of any benefit received on the receipt. This is true of all gifts, Endowed and Non Endowed. RESPONSIBILITY TO DONOR To ensure that donors and prospective donors have confidence in the University, they are entitled to:  be informed of the University's mission and the intended use of the donated resources;  receive appropriate acknowledgment and recognition;  access to pertinent information about the University; and  receive stewardship on the uses and beneficiaries of their gift(s). Donors are told who is hired if they fund an endowed chair, or the names of scholarship recipients if they fund a scholarship. FUND-RAISING PROGRAMS All solicitations of gifts from individuals, corporations, and foundations must be coordinated by the UNM Foundation and development professionals in colleges, schools, and programs. Any literature, including brochures, booklets, and newsletters used to attract private funds must be approved by the UNM Foundation in order to present a unified voice and image and to ensure that the most accurate, up-to-date information appropriate to a particular fund-raising effort is reflected. All gifts received by the University or faculty, staff, volunteers, or student organizations for support of any University program or activity, irrespective of source or gift type, shall be deposited in and expended through University accounting systems in accordance with University Administrative 7 Policies and Procedures. The use of outside bank accounts is prohibited. The UNM Foundation will ensure that all University fund-raising events comply with local, state, and federal laws. All gifts of all types should be deposited by the Foundation. This includes revenue from non-gift fundraising, such as golf tournaments or charity walks. If a gift amount is small in amount and expected to be non-repeating, the Foundation may deposit the revenue in the department’s public service index in a non-gift revenue account. Funds raised by students generally are deposited in a fund/index set up for Student Government. If the amount is large or expected to be repetitive, the Foundation may open a Foundation index for the department. FOUNDATION FUNDS There are two basic types of gifts, Endowed and Non Endowed. Each of these can have indices for public service, research, education, or clinical use. On Main Campus spending indices will be found in the public service area. For Branch campuses, they will also be in the public service area, their public service fund. Additionally, these indices can be discretionary in either endowed or NonEndowed. HSC Endowed Spending indices will be listed under the following funds. HSC = Health Sciences Center Endowed Fund Number Location Endowed Fund Name 3U0003 HSC HU Endowed Spending Education 3U0081 HSC HU Endowed Spending Research 3U0302 HSC HU Endowed Spending Clinical Services Your Non Endowed Spending indices will be listed under these funds. Non Endowed Fund Number Location Non Endowed Fund Name 3U0001 HSC HU Non Endowed Spending Research 3U0002 HSC HU Non Endowed Spending Education 3U0301 HSC HU Non Endowed Spending Clinical Service 8 ENDOWED FUNDS Endowed funds require a minimum of two indices. One index is for the corpus, which is donated funds that are invested and may not be spent. The program for all corpus funds is P504. This is a general ledger program that does not impact State format reporting. The second index is the spending index. This index quarterly receives a spending distribution from the invested funds. These are the funds that may be spent by the department. Each college, school, or department that is the recipient of an endowment receives a quarterly statement from the Foundation. The statement lists the fund title, value at the beginning and end of the fiscal year, additions to the principal, total investment returns for the fiscal year, and the total spending distribution. Departments are emailed this Endowment Activity Report. The spending distribution (the amount that can be spent) is transferred to the spending index quarterly and is based on predetermined percentages set forth by the Regents' Endowment Investment Management Policy. Both donors and departments receive an annual report in October which shows endowment performance. Generally, these funds have donor restrictions on how they may be spent, in addition to the standard UNM Policy restrictions. The department report is the Endowment Spending Distribution Report. NON ENDOWED FUNDS A Non Endowed account requires one index. All of the funds in a Non Endowed account can be spent. Non Endowed accounts are not invested. Generally, these accounts have donor restrictions on how they may be spent in addition to the standard UNM Policy restrictions. The gifts to non-endowed funds are updated in Banner weekly. Reports are run in MyReports. The foundation does not send any non-endowed reports to departments. FOUNDATION DISCRETIONARY FUNDS These are Non Endowed funds that have been given to a department or to the president of the University for distribution with no donor restrictions. UNM policies apply to spending these funds. 1) UNM Policy is reviewed. Purchases not allowed by UNM Policy will not be approved. Unrestricted Accounting collaborates with the Foundation when reviewing spending documents and approving or disapproving spending exceptions. 9 FINDING ALL YOUR FUNDS Some departments have Endowed or Non Endowed spending accounts and are not spending the money. Donors expect the money they donate to be used. Make sure you are aware of all the funds available to your department. During budget season, each department should budget to spend these funds, as the donor intended. You can use MyReports report FORURBH-Unrestricted Balance to list all the indices in any fund. To run this report sign into MyReports. The report is found in MyReports under Finance/F HSC Reports/FORURBH HSC Unrestricted Balance. To find your Non Endowed fund spending indices balances, use fund 3U0001, 3U0002, or 3U0301. To find your Endowed fund spending indices balances, run fund 3U0003, 3U0081, or 3U0302. REPORTING In this example we will look at 099A: Cancer Research Treatment Center Level 5. We could have selected a level 6 or 7 fund. We chose the Endowed Education fund 3U0003, and a PDF format. This is the report produced. Note that it lists the limits placed on the report (099A, 3U0003), and shows all the indices that fit these limits. 10 We will now look in Banner form FGIBDST at the end of June, 2015, at index 0991IN: Notice that the Net Total, [which is revenue ($50,000), less the expenses equals $26,287.63. This is the Balance available for this index shown on the FORURBH report, above. By running the FORURBH report for your organization for each of the six endowed and nonendowed funds, all of your indices will be displayed, with their current balances. 11 FOROLDH – Operating Ledger Summary Report will show the activity by index for your endowed or non endowed indices. To run the report use the following criteria: Your Org level, the endowed (or non-endowed) funds by level 3. The endowed and non-endowed funds are listed on page 5. A page of the report the above criteria produce is below: 12 ENDOWED FUNDS DEFINED The terms “Endowed” and “Non Endowed” both refer to funds established at UNM or the UNM Foundation. “Endowed” refers to gifts totaling over $25,000 that continue on in perpetuity. This means the gifts are invested, and only the total spending allocation from the gifts can be spent. The original amount donated cannot be spent. The donor specifies how the income can be spent, which is included in the Endowment Agreement document. The spending allocation from the funds can only be spent in accordance with the donor’s intent. The UNM Foundation handles the investment of these funds, and reports to the department and donor annually. These gifts have two indices. The corpus index, which is invested, and the spending index, which the department can spend. Do not get these two indices confused. New endowments can be funded over three years if the donor so chooses. With new endowments in the process of being funded over several years, there may be no funds available to spend. Revenue that would have gone to a spending index will be returned to the corpus index immediately after year end until the endowment is completely funded. Only after the endowment is fully funded will spending distributions be allowed. See appendix 8 for more detailed information. An estimated spending distribution for Endowed funds is recorded quarterly. The spending distribution is trued up at the end of the fiscal year. The spending distribution is computed based on a complex formula used by the Foundation Trustees. IDENTIFYING CORPUS FUNDS & INDICES You will have your spending indices from your FORURBH report. What if you need to identify the Corpus (general ledger investment fund for that specific Endowment) that is associated with a spending index? The easiest way to obtain this fund number is to obtain a copy of the most recent Endowment Activity Report sent to your department each year. It contains all Corpus indices and their related spending index. Another way is: 1) Go to Banner form FGIBDST. Insert the Index number and select “Next Block”. Write down the program number. In the example below, the program number is P3E074. Each Endowed spending index has a unique program number. 13 2) Go to Banner form FGITBAL. Remove the “P” from the program number. Put the rest in the “Fund” field. Select “Next Block”. The balance of $570,850.39 in AOCC-Claim on Cash is your current Endowment Corpus amount (1). Remember that while this fund has an index, you can see your balance by looking at the fund here on FGITBAL. This is the amount that is invested and is not available to spend. Your Corpus balance is adjusted monthly to reflect market value at fiscal year-end. Throughout the rest of the year the value reflects current year additions from additional gifts. Unrealized gains, losses, and other adjustments made to Market value can affect your balance significantly at year end. Your spending index will receive a distribution quarterly, with a true up at fiscal year-end. This amount is computed using a complex formula and cannot be anticipated accurately. The distribution reflects market adjustments, and 3 year rolling average balances in your corpus. 14 If you need to identify the index for your Corpus fund: 1) From the General Menu in Banner, type FTMACCI in the “Go to” box. Click enter. 2) Select the “Enter Query” icon [A] or press the F7 key. 3) Input the fund number (remove the “P” from the spending index program number to get the Corpus Fund number)[B] 4) Select the “Execute Query” icon [C] or press the F8 key. The form appears below. Note that the index for the Endowment Corpus (099676) is different from the Endowment Spending index (0990DY). 1 15 The above is an example in Banner of a Foundation Endowed Index. NON ENDOWED FUNDS DEFINED Non Endowed gifts differ from Endowed gifts in that the entire amount of the gift may be spent. The department given the gift does not have any recurring source of revenue from the gift. The donor specifies how the gift may be spent and the entire amount can be spent in accordance with the donor’s intent. The Foundation does not issue reports for non-endowed funds. For UNM the Banner accounting system is updated weekly with all pertinent information. Reports can be run at any time for the information you need by using the appropriate MyReport BANNER AND NON ENDOWED FUNDS A non-endowed account has one index associated with it. While there may be additional indices associated with a non-endowed account, there is only one primary index. This primary index is where the Foundation transfers gifts. This index is the spending index. The amount available to spend can be viewed at any time on Banner form FGIBDST. A C B 16 In fund 3U0301-Non Endow Spending Clinical Svc, index 9970FG has been selected. Go to Banner, form FGIBDST. Here is the FGIBDST form for Non Endowed spending index 9970FG. You may drill down for more detail on any account. This Non Endowed index has $35,738.63 in balance forward, and $799.35 in current year gifts. There is no corpus fund or index associated with this or ANY non-endowed index. Nothing has been spent from this index this fiscal year. Had there been any spending it would be detailed by expense account on the form above. Subsequent monthly MyReports will show when the $799.35 in gifts was received during this year, or you can drill down on the amount and see all relevant detail. In 2010 the Foundation implemented a new Foundation numbering system. All non-endowed Foundation Fund numbers now begin with a “2”, but if the fund was established before 2010, the “2” will be missing in Banner, as in the example above. To obtain the Foundation fund number, add a “2” in front of any five digit Foundation numbers found in Banner. Foundation fund numbers are all six digits long, and begin with a 2. GIFTS VERSUS CONTRACTS AND GRANTS Foundation Fund Number, found on the Fund Establishment form 17 Gifts and donations go through the Foundation, as described above. Grants, however, go through Sponsored Projects, and are monitored by Contracts and Grants Accounting. Typically grants, including private grants, want the money not spent returned at the end of the grant period. They usually want such things as progress reports and a financial report. These are clues that you are dealing with a grant and not a gift. See Appendix 9 detail on the difference between gifts, contracts, and grants. If you have something you are unsure about, notify Sponsored Projects. Sponsored Projects and the Foundation will work together to see where the best fit for it is. 18 APPENDIX 1 - ENDOWMENT GIFT AGREEMENT ENDOWED GIFT AGREEMENT Between UNIVERSITY OF NEW MEXICO FOUNDATION, INC. And DONOR NAME(S) NAME OF ENDOWED FUND This gift agreement sets forth the understanding between Donor Name(s) (the “Donor(s)”) and The University of New Mexico Foundation, a New Mexico nonprofit corporation organized and operated exclusively for educational, scientific, literary, and charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Foundation”), with respect to the Donor’s creation and the Foundation’s administration of the Name of Endowed Fund (the “Fund”). 1. Donor hereby donates, transfers and assigns to the Foundation an irrevocable gift for purposes of creating Name of Endowed Fund to support (Insert description of area of support and name of college, department or unit, along with any other specifications pertinent to the purpose of the fund.) The Fund shall be administered by the UNM Foundation in accordance with its Articles of Incorporation and Bylaws and the laws of the State of New Mexico. The Fund shall be identified as the Name of Endowed Fund and all expenditures from the Fund shall carry the name of the Fund. The University of New Mexico has appointed the following named University official and his or her successors to be responsible for the University ensuring that all expenditures made from the Fund are consistent with Donor’s intention as expressed in this Agreement. _________________________________________ Date: __________________ University Official Typed Name: ______________________________ Title:______________________________________ IF NAMED SPACE, PROFESSOR OR CHAIR: The establishment of this Fund is also subject to the approval of the Board of Regents under Regents’ Policy 2.11, “Naming University Facilities, Spaces, Endowments and Programs” and University Business Policy 1020, “Naming Facilities, Spaces, Endowments and Programs” and will be administered in accordance with these policies. 2. Source of the Fund: The Fund will be established with an initial gift of $Dollar Amount. The Donor(s) or any interested individual, corporation, foundation, or 19 organization may make additional gifts to the Fund at any time. Information about Donor/Honoree is included in Attachment A to this Agreement. IF ENDOWMENT IS NOT FULLY FUNDED AT TIME OF SIGNING: The Fund shall become effective on the date the minimum funding requirement of $25,000 has been received and accepted by the Foundation. If the endowment minimum is not reached within three (3) years of the effective date of this Agreement, the Foundation, in consultation with the University and/or the Donor(s), has the option to transfer the balance of the Fund to another endowment fund with a similar purpose or another Foundation fund specified by the Donor(s) or appropriate University official(s). IF ENDOWMENT IS FUNDED BY BEQUEST: If the bequest gift designated for this endowed fund does not amount to at least (minimum funding amount at time of signing), the Foundation, in consultation with the University, has the option to transfer the balance of the Fund to another endowment fund with a similar purpose or another Foundation fund specified by the Donor(s) or appropriate University official(s). 3. Announcement of the Fund: The Foundation or the University of New Mexico may announce the fund, including Donor name, amount, descriptions of contributions, and pertinent details in any of their publications. 4. Information on Use of Funds: The Foundation will respond to requests for information made by the Donor, the Donor’s immediate family or other individuals identified by the Donor about the activities and programs funded by the Fund. 5. Investment Authority: The Foundation is authorized to maintain, invest, and reinvest the Fund in accordance with the investment policies of the Foundation as established from time to time by the Foundation’s Board of Trustees and the Regents of the University of New Mexico. For purposes of investment only, the monies of this Fund may be commingled with other endowment funds held by the Foundation. At all times, the Fund shall be separately accounted for in the Foundation’s books and records. 6. Duration of the Fund: The Fund is established as a true endowment in perpetuity, and shall be prudently administered, invested and distributed to the University by the Foundation to accomplish Donor’s purpose as stated herein, in accord with applicable state and federal laws, and the policies and procedures of the Foundation. If the purpose for which the Fund has been instituted becomes impossible to perform or impractical to the extent that the University is unable to use the support generated by the Fund under the existing terms of the Agreement or if the University President concludes that carrying out the purpose exposes the University to an unacceptable risk of legal exposure, the Foundation shall consult with the Donor to modify the Fund. If the Donor is not available, the Foundation’s President, in consultation with the University Official and the University President, may recommend to the Foundation’s Board of Trustees for approval an alternative purpose for the Fund as close to and consistent with the Donor’s original intent as it can at that time devise. 7. Assessment of Normal Fees and Costs: Normal fees associated with the collection and disbursement of gifts and gift income may be assessed by the Foundation, as well as any 20 costs incurred by the Foundation to establish, invest, administer, protect or defend the Fund. 8. Representatives and Successors Bound: This Agreement shall be binding upon and inure to the benefit of the parties hereto, their representatives and their lawful successors. As a result, this gift cannot be drawn back into Donor’s estate, be undone or changed by Donor’s heirs, beneficiaries, creditors or the personal representative of Donor’s estate. [Alternative Section Reserved for Donor Corporations]: This Agreement shall be binding on and inure to the benefit of the parties hereto. If Donor Corporation ceases to exist, the Fund shall continue to bear the Donor’s name unless Donor informs the Foundation of its intent to rename the Fund in the name of its successor corporation. 9. Governing Law: This Agreement shall be governed by and interpreted in accordance with the laws of the State of New Mexico, excluding that body of law concerning choice of law. This means that all aspects of the Donor’s gift are subject to New Mexico law, even if the choice of law rules might otherwise mean that another state’s laws might otherwise be applicable. 10. Modification of Agreement: The terms and conditions of this Agreement may not be orally amended, modified, or altered but may be amended, modified, or altered only in writing signed by the Donor(s) and the Foundation. This Agreement will be effective when executed by the Donor and the Foundation. DONOR Draft – please do not sign Date: [Donor Name] Draft – please do not sign Date: [Donor Name] UNIVERSITY OF NEW MEXICO FOUNDATION, INC. Draft – please do not sign Date: Henry Nemcik, President & CEO APPENDIX 2 - FUND ESTABLISHMENT FORM 21 22 APPENDIX 3 - ENDOWED AND NON ENDOWED COMPARED Endowed and Non Endowed funds are frequently confused. Here is some comparative information. Endowed Non Endowed Has a spending index showing money available to spend now. Yes Yes Has a corpus Fund (Fund containing dollars to be invested not spent) Yes No All new gifts are reported in Banner Monthly Weekly Donor receives an annual Foundation report showing performance. Yes No Quarterly report to Deans, Directors and Chairs showing previous corpus balance, new corpus balance, spending distribution and spending balance. (similar to Donor report) Yes No Need to budget spending index. Yes Yes APPENDIX 4 - RELATED POLICIES These UNM policies directly relate to Endowed and Non Endowed funds. They may be found at https://policy.unm.edu/university-policies/index.html in the UNM Business Policies and Procedures Manual. Name of Policy Policy Number Allowable and Unallowable Expenditures 4000 Endowments 7500 Gifts made to the University 1030 Gifts of tangible Personal Property 7110 Investment Management 7610 Naming Facilities, Spaces, Endowments, Programs 1020 23 APPENDIX 5 - ENDOWMENT MINIMUMS The UNIVERSITY OF NEW MEXICO ENDOWMENTS SUGGESTED MINIMUM FUNDING LEVELS Distinguished University Chair $2,500,000 (HSC) University Chair 1,500,000 University Chair 1,000,000 (Junior Faculty) Distinguished Professorship 500,000 Scientist in Residence 500,000 Visiting Professorship 250,000 Distinguished Lectureship 250,000 Research Fellowship 250,000 Regents’ Endowed Scholarship 200,000 UNM Faculty Fellowship 100,000 UNM Graduate Fellowship 100,000 Named Endowment for Academic Excellence 50,000 Presidential Endowed Scholarship 50,000 Named Endowment (any purpose other than above) 25,000 24 APPENDIX 6 - TERM DEFINITIONS Corpus: Principal; capital as contrasted with the income derived from it. Endowed: To furnish with money or its equivalent, as a permanent fund for support. Non-endowed: Money or its equivalent, received as a gift for the purpose of being spent, as per the donor’s restrictions. Fully Funded Endowment: The amount the donor agreed to donate has been completely collected. Partially Funded Endowment: The donor is paying the endowment over a period of time, and not all payments have been received. True Endowment: True endowments are those funds subject to restrictions in gift instruments permitting only the income to be used as specified by the donor and that the principal be held in perpetuity. Term Endowment: Term endowments are funds similar to true endowment funds except that upon the passage of a stated period of time or a particular occurrence, all or part of the principal may be expended. Quasi Endowment: Quasi-endowment funds are internally designated by the Board Regents for similar purposes as true endowment funds; however, the gifts are donor unrestricted and any portion of the principal of quasi-endowment funds may be expended at the discretion of the Board of Regents. Spending Distribution: The Spending Distribution is the funds moved into an Endowed spending index quarterly and trued up annually. It is the amount of money that may be spent. The spending distribution originates from the Endowed Corpus account. 25 APPENDIX 7 - FOUNDATION REPORTS The Foundation emails departments and other interested parties two reports on a regular basis. The Endowment Activity is emailed quarterly about two months after each quarter ends. The first report is for July through September, mailed in November. An Endowment Spending Distribution Report is emailed annually, in March. No Non-Endowed reports are produced by the foundation for departments. The Non Endowed reports can be run in MyReports. An example of an Annual Foundation Endowment Activity Report follows. 26 27 An Example of an Endowed Spending Distribution Report is below: 28 APPENDIX 8 - ENDOWED & NON ENDOWED BANNER REPORTING The MyReports FORURBH – Unrestricted Balance and FOROLDS – Operating Ledger Summary are useful when run for these funds. Here are examples of both reports. FORURBH will be found in the F HSC Reports subfolder of MyReports. FOROLDS will be found here, and in the F All Campus Reports subfolder. FORURBH Sample page: 29 FOROLDH Criteria page: Notice that you select two criteria. One is the organization level where your indices reside, the other is the fund or funds on which you wish to run data. Select “Summary” and the time frame. Group by index. 30 FOROLDH Sample page from above criteria: 31 APPENDIX 9 – DISTINGUISHING BETWEEN GIFTS, GRANTS AND CONTRACTS Distinguishing Between Gifts, Grants and Contracts TABLE OF CONTENTS 1.0 Introduction 2.0 Gifts 3.0 Grants 4.0 Contracts 5.0 Licensing Agreements 6.0 Administrative Offices 1.0 INTRODUCTION Correct classification and processing of external funds (gifts, grants, and contracts) is essential for the accomplishment of mandatory fiscal and fiduciary management by UNMHSC. To enhance coordination and to ensure consistent and proper treatment of funds, these policies and procedures have been developed and are intended to be used by all UNMHSC faculty and administrators seeking external support. Gifts, grants, and contracts are the principal forms of awards made by both governmental and private sources. The correct classification and processing of awards is sometimes complex and will require the exercise of informed judgment, particularly in cases where the nature of an award is not immediately clear. Rather than focusing on any single characteristic, each award must be considered in its totality. To clarify the process of determining classification and assure greater consistency the following guidelines should be used to determine both the type of award and the UNMHSC office responsible for administration. 2.0 GIFTS A gift is defined as a voluntary transfer of money or property made as a charitable donation without expectation or receipt of an economic benefit. It may or may not be given for a specific purpose. The following are generally characteristics of gifts: A. Contractual requirements are not imposed. However, objectives may be stated and use of funds may be restricted to a particular purpose, such as professorship, scholarship or research in a defined area. B. Award is irrevocable. C. A period of performance is not generally specified. 32 D. Formal financial accounting and technical reporting are not required and there is no requirement to return unexpended funds. However, stewardship reports documenting the utilization and/or impact of the gift may be requested. E. Federal, state, local or foreign governmental support is not typically considered a gift. Cash, checks, and stock certificates offered to the University without a legally binding agreement or service requirement would normally be processed as gifts, although on rare occasion a grant may be paid in stock. 3.0 GRANTS A grant is defined as a voluntary transfer of money or property for the primary intent to carry out a public purpose of support or stimulation without direct benefit to the sponsor. The following are generally characteristics of grants: A. The award contains terms on the use of funds, such as budgetary restrictions; states programmatic objectives to be achieved; defines responsible individuals and a period of performance; and details ownership rights. B. Usually the result of submitting an outcome-driven proposal. C. Programmatic and/or fiscal reports during the life of the project and at the end of the project may be required. D. May address intellectual property ownership and rights in data issues. E. Contains language regarding the right to revoke an award or withhold funding. F. Prior sponsor approval is required for significant programmatic and/or fiscal deviations. G. Future commitment of resources to provide continued support of the project may be required by the University. 4.0 CONTRACTS A contract is defined as the acquisition of property or services for the direct benefit of the sponsor on a quid pro quo basis. In general, the criteria for identifying a contract are the same as those for a grant except: A. The award may be subject to more restrictive conditions outlined in a contractual instrument. B. Financing may be on a cost reimbursement or fixed price basis. C. The sponsor participates in determining the work to be performed or the services to be provided. D. Intellectual property and rights in data are significant considerations. 33 Under the guidelines presented here, awards offered to the University for the performance of services such as testing or evaluating drugs for pharmaceutical companies would normally be classified as grants/contracts. 5.0 LICENSING AGREEMENTS A licensing agreement is a contract where one or more of the following conditions apply: A. Consideration is received in exchange for an option or a license to University owned intellectual property. B. Option or license terms are established or suggested pre-existing University owned intellectual property. 6.0 ADMINISTRATIVE OFFICES The criteria listed here are applicable to all awards made available to UNMHSC. When the determination is unclear, the following offices should be contacted to determine the appropriate classification: Gifts – UNM Foundation 700 Lomas NE Suite 108 Betsy Till, 277-4503 Betsy.Till@unmfund.org Grants and Contracts are administered through Financial Services HSC – UNMHSC Financial Services Sponsored Projects HSC-PreAward@salud.unm.edu Rena Vinyard, Director Licensing Agreements are administered through STC.UNM – UNM Science & Technology Park Jovan Heusser, Sr Innovation Manager (HSC POC) jheusser@stc.unm.edu **END HANDOUT** **START PRESENTATION** UNDERSTANDING ENDOWED & NON ENDOWED SPENDING INDICES Presented by Terry Shoebotham 11/17/15 1 Presentation Goals: After this presentation you will be able to: • State the difference between Endowed and Non Endowed gifts • Know the difference (or how to find out) between gifts and Contracts or Grants • Find your Endowed Spending Indices with MyReports • Find your Non-endowed Spending Indices with MyReports • Know about Foundation Reports: • What do they send? • How often do they send it? • What information does it have? 2 What makes Foundation funds different from most UNM Funds? • Endowed and Non Endowed funds are funded by gifts to the University. • Most UNM funding is from other sources. • State Appropriations • Clinical Revenue • Tuition Revenue • Contracts & Grants 3 What is the difference between Endowed and Non Endowed? • Endowed Funds are large gifts that are invested and the income from these gifts is spent • Non Endowed Funds are gifts intended to be spent in their entirety 4 Gifts and Grants- What’s the Difference? • Gifts go through the Foundation • Quid pro Quo not allowed • Grants go through Sponsored Projects • Grants want remaining money returned at the end of the grant. • Grants want progress and/or financial reports • In doubt? Call or email: • Sponsored Projects 5 What do Gifts look like at UNM? • UNM has a foundation set up to receive these funds • The donor can add restrictions on how these funds may be spent • There are two basic types; Non Endowed and Endowed • UNM requires that all solicitations of gifts be coordinated by the UNM Foundation. Any fund raising literature used must be approved by the Foundation. 6 Gift or Contract? • You receive a check for $27.82 in the mail. A letter accompanies the check. The letter includes: “final payment: YYB764” • You receive a check of $50,000 in the mail. A handwritten letter accompanies the check. In the letter it says, “My recently deceased husband was tenderly cared for at your hospital, and asked me to send some money to you in appreciation for all the hospital did to make him comfortable in his last days. Please use this money to make other patients comfortable.” • You receive a check for $21,000 in the mail. A letter accompanies the check. The letter includes: “Clinical trial payment for Dr. Smith’s research on Fosimilox progression.” • You receive a letter (no check) saying “This is to notify Dr. Smith, we will be sending $42,000 next week.” 7 How is the $ Handled? • You receive a check for $27.82 in The mail. A letter accompanies the check. The letter includes: “final payment: YYB764” • You receive a check of $50,000 in the mail. A handwritten letter accompanies the check. In the letter it says, “My recently deceased husband was tenderly cared for at your hospital, and asked me to send some money to you in appreciation for all the hospital did to make him comfortable in his last days. Please use this money to make other patients comfortable.” • You receive a check for $21,000 in the mail. A letter accompanies the check. The letter includes: “Clinical trial payment for Dr. Smith’s research on Fosimilox progression.” • You receive a letter (no check) saying “This is to notify Dr. Smith, we will be sending $42,000 next week.” 8 Non Endowed or Endowed? • Non Endowed funds may be spent within the limits of the donor’s intent. One index is set up, the funds are placed in the index, and the department may budget and spend the funds. • Endowed Funds have two indices. One contains the corpus(actual gift), and a SECOND INDEX, called the spending index, receives the amount that may be spent each year. 9 How to Identify Endowed and Non Endowed 10 Type Fund Number Name Endowed 3U0003 HU Endowed Spending Education Endowed 3U0081 HU Endowed Spending Research Endowed 3U0302 HU Endowed Spending Clinical Svc Non Endowed 3U0002 HU Non Endowed Spending Education Non Endowed 3U0001 HU Non Endowed Spending Research Non Endowed 3U0301 HU Non Endowed Spending Clinical Svc How to Identify Endowed and Non Endowed Spending Indices • Check the Fund • If it is “Non Endowed”, you can spend it. All indices in Non Endowed funds are spending indices. • If it is “Endowed” and it appears on your FORURBH MyReport, you can spend it. It is an Endowed Spending Index. No Corpus indices are on this report. • Check the index on a Foundation Report. If it is in the “Spending Index” column, it is an Endowed spending Index and can be spent. 11 Finding Your Spending Indices There are several ways to find Endowed and Non-Endowed spending indices. Information in your handout goes over some of the more complex ways. The easiest ways are described here. 1. Run MyReport FORURBH for endowed funds 3U003, 3U0081, 3U0302 and non endowed funds 3U0001, 3U0002 and 3U0301. 2. For Endowed indices only, look at the indices listed on your area’s most recent Endowment Activity Report or Endowment Spending Distribution Report. 12 13 Finding Your Spending Indices 14 Finding Your Spending Indices Other Useful Reports/Banner Screens • FOROLDS Report can be run to show all the detail, by index, of your Endowed and Non-Endowed spending indices. • The Criteria for running the report is next, and is key • This report is found in the F All Campus Reports subfolder in MyReports. • Banner screen FGIBDST. Drill down on accounts to see the documents making up the detail for each index. 15 FOROLDS Report Criteria 16 A page from FOROLDS With above Criteria 17 Viewing the detail - FGIBDST 18 Viewing the detail - FGIBDST 19 Viewing the detail - FGIBDST 20 Viewing the detail - FGIBDST 21 Viewing the detail - FGIBDST 22 Viewing the detail - FGIBDST 23 Other Indices and Methods • Instructions on obtaining Corpus indices, how Banner index numbers relate to Foundation fund numbers, and how to find one when you have only the other are rarely needed, but included in your handout. • We will briefly cover some of it here. • For Endowed funds, the Corpus indices are listed next to their spending index on the Foundation Report, Endowment Activity Report 24 Foundation Reports • The two Foundation Reports that are sent are: • Endowment Activity Report • Sent quarterly. (about 2 months after the quarter ends) • Endowment Spending Distribution Report • Sent annually. (usually near the beginning of March) • These reports are emailed to Departments 25 Endowment Activity Report 26 Endowment Spending Distribution Report 27 Identifying Corpus Fund from Banner • Recommended: • Find corpus indices on the Foundation Reports • You can find corpus indices in Banner. You need: • Corresponding Spending index 28 Identifying Corpus Funds 29 Spending Index Use Banner Form To Get Index Program Use Banner Form/remove “P” Put in fund field To get Corpus Amount in A0CC – Claim on Cash 0990DY FGIBDST or FTMACCI P3E024 FGITBAL/3E024 Fund/3E024 $70,850.39 914036 FGIBDST or FTMACCI P3E044 FGITBAL/3E044 Fund/3E044 $15,838.09 Identifying Corpus Funds 30 Identifying Corpus Funds 31 Identifying Corpus Funds 32 Spending Index Use Banner Form Index Program Use Banner Form Put in fund field Corpus Amount is in: 043167 FGIBDST or FTMACCI P3E102 FGITBAL 3E102 AOCC – Claim on Cash Identifying Corpus Indices • Go to FTMACCI • Put the fund number for the Corpus in the Fund area • Next Block • The Corpus index will be displayed 33 Identifying Corpus Indices 34 Identifying Donor Intent 35 Identifying Donor Intent 36 Identifying Donor Intent 37 Scenario: It has been a busy, hectic week. Your manager comes in Friday morning and says, “We need to get that broken machine in research fixed, and the cost is going to be $250,000. Please get a PO out today.” She tosses a bunch of documents on your desk related to the expense. Your manager adds, “use either the Jack Memorial Fund or the Jill Non-endowed fund for this expense. Pick the best one; just make SURE you don’t overspend the one you pick!” “I have meetings today, and will see you Monday. Let me know then which you used, and why.” 38 Which to Choose in November? Endowed Jack Jingle Memorial Fund • Endowment Spending Distribution Report – FY15 • $300,000 in 2015, 290,000 in 2014 • Balance on Nov 1, 2015 in “1011- Endowment Spending Distribution Account” seen in FGIBDST is $80,000 • Ignore retained earnings amounts for this exercise. (1900, 1901, 1903) • No current year spending in FGIBDST Jill Jingle Non-endowed Fund (Run Nov 1, 2015) • Non Endowed “1000 Gifts General” total for FY 2016, so far in FGIBDST and matching on FOROLDS (YTD Nov) MyReport, run same day • 17 gifts ranging from $500 to $25,000, totaling $120,000 • No current year spending in FGIBDST • Ignore retained earnings amounts for this exercise. (1900, 1901, 1903) 39 Which to Choose in November? Endowed Jack Jingle Memorial Fund • Endowment Spending Distribution Report – FY15 • $300,000 in 2015, 290,000 in 2014 • Balance on Nov 1, 2015 in “1011- Endowment Spending Distribution Account” seen in FGIBDST is $80,000 What Other info may you want? • For what does the Fund Establishment form say the funds can be used? (anything useful to the department) • What is the Budget? (FGIBDST indicates the budget is $300,000) • How many quarters of Spending Distribution have been distributed? (One; In September for $80,000. $80x4= $320K • Ignore any amounts in 10G0-Endowment Income General 40 Which to Choose in November? • Jill Jingle Non-endowed Fund (Run Nov 1, 2015) • Non Endowed “1000 Gifts General” total for FY 2016, so far in FGIBDST and matching on FOROLDH (YTD Oct) MyReport, run same day • 17 gifts ranging from $500 to $25,000, totaling $120,000 What Other info may you want? • For what does the Fund Establishment form say the funds can be used? (anything useful to the department) • What is the Budget? (FGIBDST indicate 2016 budget is $230,000. Last year budget was $250,000) 41 Which to Choose in November? Why? Endowed Jack Jingle Memorial Fund Jill Jingle Non-endowed Fund 42 Additional Information? • Foundation website is at https://www.unmfund.org/ • Your LEARN Endowment handout has 9 appendices 43 You Should Now Know • The difference between Endowed and Non Endowed gifts • The difference between gifts and Contracts or Grants • What MyReport to run to find your Endowed Spending Indices • What MyReport to run to find your Non-endowed Spending Indices • Foundation Reports: • What they send • How often they send it • What information it gives 44 What are Your Questions? 45

Sub-Award Through Workflow

Presenter: Kate Charleston, Jason Galloway
Date: 09-09-2015

Presentation - PDF

Subaward Invoices and Workflow http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Why…. UNIFORM GUIDANCE RULES 30 Day Deadline Monitoring Responsibilities http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg How…. Workflow What will the communication look like? http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Approval Options The Department Administrator will be responsible for approving in Workflow The PI is responsible for approving the invoice http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Three options 1.Print Subaward invoice, PI manually signs 2.Electronic signature of the PI on the Subaward Invoice Approval Form 3.Attach Email approval from PI http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Adding documents to a PDF File xxxxx xxxxx 2 3 1 http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg REMEMBER 30 Day Deadline Document Legitimate Delays Keep Authorization Documentation http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg C&G Accounting CIG Departmental Administrator Accounts Payable P.I. http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg How to setup a proxy to approve Subaward invoices http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Proxy 90-Day End Date Notice Grant Closeout/Extension Workflow Training http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Why…. •Increase efficiency in the close out process •Comply with Uniform Guidance Documentation Rules •Enhance communication, tracking, and accountability during various stages of the process http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg 90-Day End Date Notice •Workflow runs nightly and checks for Funds ending in 90 days.  •E-mail is sent to the Principal Investigator Financial Manager on FTMFUND •Account Administrator Position 004 on the “Personnel” screen of FRAGRNT http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Grant Reconciliation Grant Reconciliation Required Certification “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).” http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg FTMFUND -PI FRAGRNT –Acct Admin Initial Workflow e-mail to AA(1) Initial Workflow e-mail to PI(14) Extend or Close Fund Fund is already extended in Banner e-mail to A/PI(12) Pending e-mail to AA(13) Fund Extended e-mail to AA/PI(11) Extension not approved e-mail to FM(9) Extend or Close Fund Close-out e-mail to AA(4) AA Workflow for Close Out AA Close out Close the Fund e-mail to AA/PI(7) Progress Report Extension with Carryforward Request http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg •As part of the Federal Financial Report (FFR) in the Remarks section we document that a carryforward request will be completed at a later date •It is the Department’s responsibility to complete the carryforward request. Things to remember •Emails are processed thru Workflow •Workflow utilizes Banner for information •FRAGRNT •Fiscal Monitor •Account Administrator •Notify Fiscal Monitor of errors / updates •In advance if possible •As identified •Grant Reconciliation is required to be returned to C&G http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg Questions Kate Charleston 505-272-8047 Jason Galloway 505-272-0163 http://hsc.unm.edu/about/marketing/images/Logos/hsc/hsc1.jpg

PCards

Presenter: Laura Putz
Date: 08-04-2015

Presentation - PDF

Presented by: HSC Unrestricted Accounting Laura Putz, Associate Controller PCARDSPCARDS http://pcard.unm.edu/common/images/pcard-logo-new.jpg .Purchasing Cards -The Basics .Pcard Log .Reallocations .Special Exceptions .Review Process .Infractions .Workflow TOPICS FOR REVIEW PCARDS PCARDS ––THE RISKSTHE RISKS Investigations uncover misuse of University funds; former employee arrested Vanderbilt University in 2012; the amount is “substantial”  The employee’s responsibilities included initiating and processing financial transactions.  The University immediately strengthened its controls. California Auditor Investigations •A supervisor … spent an additional $5,000 without being able to show that the expenditures were for a state purpose. •23 employees were paid travel benefits of $55,000 for commutes and expenses incurred near their homes or headquarters. •Calif. University official wasted $6,000 on improper travel; conference was in Birmingham, hotel for 3 days was in London.  He said he stayed there to get a better airline fare home. Misuse of Funds State employee and business owner convicted of bribery.  One employee received a 7 day jail sentence, the other received 3 years probation.  The business owner received 14 days in jail.  Loose controls contributed to the thefts. The Purchasing Card Program is intended to simplify the procurement and payment process and reduce total acquisition cost. Additionally, it provides users with greater flexibility. .Goods, materials, supplies and non-capital equipment up to $10,000 per transaction .Approved services not exceeding $5,000 per transactions .Convenient .Quick PCARDS PCARDS ––THE REWARDSTHE REWARDS http://blommi.com/wp-content/uploads/2011/02/make-slow-blog-faster.jpg http://cdn.moneycrashers.com/wp-content/uploads/2012/11/credit1.jpg FY14 Results PCARD STATISTICS Campus  TransactionCount  Transaction Total Main Campus  105,771  $45,724,175 Branch Campus  8,166  3,364,591 Health Science Center  62,131  21,993,519 GrandTotal  176,068  $71,082,285 Preliminary FY15 Results PCARD STATISTICS Campus  TransactionCount  Transaction Total  Percent Increase $ Main Campus  103,247  $49,329,524  7.8% Branch Campus  9,976  4,068,790  20.9% Health Science Center  65,627  24,500,857  11.4% GrandTotal  178,850  $77,585,120  14.9% Purchases are controlled through a combination of external controls and internal Policies and Procedures. The bank's Card Processor checks the following criteria for each transaction prior to giving the vendor approval to accept the transaction. .Card status .Dollar limit of individual transaction .Monthly dollar limit .Merchant Commodity Code (MCC) number not blocked .Daily dollar limit .Daily limit on number of transactions .Monthly limit on number of transactions INTERNAL CONTROL RESPONSIBILITIESINTERNAL CONTROL RESPONSIBILITIES http://splicketypubgroup.com/wp-content/uploads/2013/11/roadblock.jpg .The Cardholder will reconcile the Transaction Log, bank statement, and supporting documentation. Examples of supporting documentation include original sales slips, cash register receipts, paid invoices, order forms, and receiving reports that provide line item information, item description, quantity, and dollar amounts. Purchasing Card charge slips/sales drafts, faxed copies, photocopies, or online order forms are not adequate support alone. .A valid business purpose is required for every transaction and must be entered on the log THE PCARD RECONCILIATION LOGTHE PCARD RECONCILIATION LOG THETHEPCARD LOGPCARD LOG THE PCARD LOGTHE PCARD LOG http://treetopsecret.com/wp-content/uploads/2014/03/178111159-who-what-when-where-why.jpg THE PCARD LOG THE PCARD LOG ––BUSINESS PURPOSEBUSINESS PURPOSE .Pcards have a default index and account  (i.e.: 258000/3100) .All charges will go to this default index and account unless re-allocated to another index/account .The correct index and account for a charge are the index/account listed on the P-card log for that charge .Charges must be re-allocated within 10 days of purchase to the correct index/account or they will automatically go to the default index/account .If this re-allocation does not occur timely, bad things happen: .More work.  A JV must be done reallocating the charge from the default index/account to the correct index/account .The cardholder incurs a Pcard infraction PCARD REALLOCATIONSPCARD REALLOCATIONS PCARD REALLOCATIONS Vendor charges PCard and transmits to VISA (may not be immediate –can take up to one week) VISA transmits data to Bank of America (daily during work week) Bank of America data loads into Banner Finance (daily during work week) PCARD REALLOCATIONSPCARD REALLOCATIONS Cardholder reallocates from default to actual index / account code in FWAINVT (10 days to reallocate) Transaction posts in Banner Finance to index/account code (posts frequently during work day) THE PCARD LOG THE PCARD LOG ––WHAT TO REALLOCATE?WHAT TO REALLOCATE? Three Categories 1)Always required from Core Accounting Office and PCard Department REGARDLESS of funding source (Restricted or Unrestricted indices) 2)Required from Restricted Accounting offices and PCard Department (Restricted Indexes) 3)Required from Pcard Department only SPECIAL EXCEPTIONSSPECIAL EXCEPTIONS .Alcoholic Beverages .Awards and Prizes .Gifts .Promotional Items .Tuition, including UNM Tuition Required for Policy Compliance and determine if allowable .Participant Incentives .Postage stamps .Pre-Paid Phone Cards .Prescription Drugs/Controlled Substances Required for Internal Control and determine if allowable CATEGORY 1 CATEGORY 1 --REVIEWED BY ACCOUNTING (BOTH REVIEWED BY ACCOUNTING (BOTH UNRESTRICTED AND RESTRICTED INDICES)UNRESTRICTED AND RESTRICTED INDICES) .Advertisements .Animals .Food Catering .Refreshments (including paper goods) .Services .Rentals (facilities, etc.) These purchases are notgenerally allowable on most contracts or grants. CATEGORY 2 CATEGORY 2 --REVIEWED BY RESTRICTED ACCOUNTING REVIEWED BY RESTRICTED ACCOUNTING .Agreements/Contracts .Catering Agreements/Contracts .Maintenance Contracts Required for Signature Authorization Compliance .Computers or Servers not purchased in LoboMart .Construction Projects, including mounted furniture or paid for office maintenance Required for Inventory/Property Accounting CATEGORY 3 CATEGORY 3 --REVIEWED BY PCARD DEPARTMENT REVIEWED BY PCARD DEPARTMENT ONLYONLY .Copier/Fax/Printer/Scanner .Key Duplicating .Vehicle Repair .Software available for purchase through ITS and/or >$2,500 .Telephones/telecommunications Services.  Includes cell phones and cell phone service Policy/Services provided by UNM Departments CATEGORY 3 CATEGORY 3 --REVIEWED BY PCARD DEPARTMENT REVIEWED BY PCARD DEPARTMENT ONLYONLY CATEGORY 3 CATEGORY 3 --REVIEWED BY PCARD DEPARTMENT REVIEWED BY PCARD DEPARTMENT ONLYONLY .Insurance –Policy compliance .Photos/Electronic Images to be published or reproduced -Legal considerations .3rdParty Checkout Vendors (PayPal, Google, etc.) -Internal Control .Payments to Foreign Entities –Tax reporting compliance .Services listed in the Prohibited Service List .Archeologist .Architects .Certified Public Accountants .Consultants .Contractors .Engineers .Land Surveyors .Landscape Architects .Lawyers .Legal .Management & Systems Consultants .Planners .Psychologist PROHIBITED SERVICES LISTPROHIBITED SERVICES LIST .Medical Arts Practitioner .Researchers .Scientists .Service workers .Security Services .Teachers and other instructors .Telephone solicitors .Childcare Services .Computer consultants and programmers .Employment Services .Plumbing .Electrical repairs .Individuals or business providing typing, data entry or other clerical office duties PROHIBITED SERVICES LISTPROHIBITED SERVICES LIST PROHIBITED SERVICES LIST REASONSPROHIBITED SERVICES LIST REASONS .IRS Compliance .1099 Reporting Complexities .Employee versus Independent Contractor .New Mexico Constitution .Legal representation of institution .NM State Audit Rule .Information Technology .HIPAA Compliance .FERPA Compliance .Services provided by UNM Departments .Routine or one time maintenance .Repairs .Technical Services .Printing .Photocopying .Duplication .Film Development APPROVED SERVICES LISTAPPROVED SERVICES LIST .Food .Promotional Items .Awards .Get approval before purchase .Improper or late reallocation DETAILS THAT TRIP YOU UPDETAILS THAT TRIP YOU UP http://www.attiglawfirm.com/wp-content/uploads/2014/05/stumble2.jpg FOOD .The department is responsible for following Policy UAP 4000-Allowable and Unallowable Expenditures .Generally, food only requires a Special Exception when purchased on a Restricted index, UNLESS .If a contract is involved, request a special exception from Pcard (http://pcard.unm.edu/) website if using an Unrestricted index .If a contract is involved, request a special exception from your Contracts and Grant office (http://pcard.unm.edu/) website if using a Restricted index .If alcohol is involved, request a special exception from Unrestricted Accounting ADDITIONAL CONSIDERATIONS PCARD SPECIAL EXCEPTIONSADDITIONAL CONSIDERATIONS PCARD SPECIAL EXCEPTIONS PROMOTIONAL ITEMS .Information to provide for consideration .Item(s) being purchased .Give cost of each item .Quantity of each item .Intended recipients AWARDS .Must have an approved Award on file before requesting the Special Exception .This includes Staff and Student Awards ADDITIONAL CONSIDERATIONS PCARD ADDITIONAL CONSIDERATIONS PCARD SPECIAL SPECIAL EXCEPTIONSEXCEPTIONS http://www.bondprinting.com/Assets/promotional-products.gif http://www.boats.com/boat-content/files/2013/12/signing-paperwork.jpg .Request approval BEFORE the purchase!! .All after the fact exceptions need to be explained. .Reallocating charges to unrestricted indices from cards with a default restricted index is NOT ALLOWED. .Only applies to a limited number of cardholders. .Reallocate Pcard purchases timely-within the allowed 10 days period. .Or earlier –change the posting date to expedite posting to Banner .Reallocate your transactions to the correct index-account specified in the request. .Part of Quality Control and Compliance Review ADDITIONAL CONSIDERATIONS PCARD ADDITIONAL CONSIDERATIONS PCARD SPECIAL SPECIAL EXCEPTIONSEXCEPTIONS PCARD DEPARTMENT REVIEWPCARD DEPARTMENT REVIEW .Purchasing Cards :  1,100 .Fuel Cards:  250 .Average Transactions per month:  14,000 .Average Spending per month:  $5,600,000 .Average infractions per month:  620 .Statements per year:  16,200 .PCard department staffing:  3 FTE UNM PCARDHOLDER SUMMARY .Proper completion of the Transaction Log, including necessary signatures that support each transaction .The existence and retention of original supporting documentation .Reconciliation of the Purchasing Card Bank Statement to the Transaction Log and supporting receipts .Appropriate allocation (index/account code) .Business purpose and approval of purchases .Sales tax was not assessed and paid .Purchases are appropriate and within the University's Policies .Unusual activity .Incremental/split purchases .Services with unapproved vendors QUALITY CONTROL AND COMPLIANCE REVIEWQUALITY CONTROL AND COMPLIANCE REVIEW .Were Hazardous Chemical(s)reported to Safety and Risk Management? .Receipts: .Do the receipts include line item detail? .Is the receipt original? (not a fax/Copy/Online Order Receipt) .Are memos included for any lost/missing receipts? .Are receipts attached but purchase not on log? .Were disputes resolved in a timely manner? .Were Pcard transactions allocated within 10 days? .Were Computer/Laptop purchases reported to Inventory Control? .Were Special Exceptions requested when required? .Were travel purchases made for “unallowed” individuals? .Foreign National Individuals require exception request .Cannot use PCard for rental cars for non-UNM employees QUALITY CONTROL AND COMPLIANCE REVIEWQUALITY CONTROL AND COMPLIANCE REVIEW Three Categories of Infractions: Level I –Improper Record Keeping Level II –Incremental/Prohibited Purchase Level III –Personal and/or Unauthorized Purchase Consequences: A Cardholder that has multiple infractions may be required to be retrained.  A history of non-compliance may result in Card privileges being terminated. PCARD VIOLATIONSPCARD VIOLATIONS http://images.sodahead.com/polls/002126153/462739198_throw_penalty_flag1_xlarge.jpeg .Missing Transaction Log, or Log not completed correctly .Transaction Log was submitted without proper signatures, or the signatures were not authorized signatures .Supporting documentation is not sorted in the correct order .The Transaction Log and bank statement do not balance .Missing "transferred to" Index/Account code on Transaction Log .An attempt to reallocate a transaction to an unauthorized Index/Account code .The purchase of hazardous chemicals/radioactive materials was not reported to Safety & Risk Services by the department LEVEL I INFRACTIONS LEVEL I INFRACTIONS ––IMPROPER RECORD KEEPINGIMPROPER RECORD KEEPING http://images.sodahead.com/polls/002126153/462739198_throw_penalty_flag1_xlarge.jpeg .The source of supporting documentation does not provide line item information including item description, quantity, and dollar amounts .Dollar amounts on supporting documentation were altered .File not received within 30 days of the bank statement date .Non-original source of supporting documentation provided (fax, photocopy, or online order form) .The Cardholder has left the department and the PCard Administrator was not notified to close the Card .The Cardholder has failed to respond to requests from the PCard office for vendor information .Missing source of supporting documentation (original packing slip, paid invoice, or register receipt) LEVEL I INFRACTIONS LEVEL I INFRACTIONS ––IMPROPER RECORD KEEPINGIMPROPER RECORD KEEPING http://images.sodahead.com/polls/002126153/462739198_throw_penalty_flag1_xlarge.jpeg .Sales tax was assessed and paid and Cardholder has not requested a credit or submitted a personal reimbursement .The Card was used to pay for an unallowable service .A purchase was made for more than $10,000.00 without prior authorization from Purchasing .It appears that an individual other than the Cardholder used the Card .It appears that there was an incremental/split purchase .It appears that there was a purchase of a prohibited item .Airline ticket purchased for unauthorized traveler LEVEL II INFRACTIONS LEVEL II INFRACTIONS ––INCREMENTAL/PROHIBITEDINCREMENTAL/PROHIBITED http://images.sodahead.com/polls/002126153/462739198_throw_penalty_flag1_xlarge.jpeg .There appears to be a personal purchase made .There appears to be an unauthorized purchase made For the above violations: .A written explanation is required from the Dean, Director, or Department Chair including a statement of disciplinary action taken. .Immediate cancellation of the PCard and immediate personal reimbursement. Potential disciplinary action up to and including termination of employment. LEVEL III INFRACTIONS LEVEL III INFRACTIONS ––PERSONAL AND/OR PERSONAL AND/OR UNAUTHORIZED PURCHASEUNAUTHORIZED PURCHASE http://images.sodahead.com/polls/002126153/462739198_throw_penalty_flag1_xlarge.jpeg Infraction  Calendar Year 2014  Calendar Year 2015* Transaction(s) notReallocated  1,232  410 Inadequate Business Purpose  1,207  336 Receipt Detail  821  411 Log not submitted on time  796  345 Missing Exception Request  733  359 ReceiptMissing  643  197 Asset Tag/Inventory  391  120 INFRACTION STATISTICSINFRACTION STATISTICS * Through June 5thStatements Infraction  Calendar Year 2014  Calendar Year 2015* Unallowable Purchase  134  89 SalesTax  273  80 Contract Missing/not reviewed  173  66 Personal Purchases/Possible Fraud  37  2 Missing Signatures  39  44 Travel  106  35 Log not Balanced  20  6 INFRACTION STATISTICSINFRACTION STATISTICS * Through June 5thStatements .Average monthly travel spending:  $300,000 .4,416 items pending in department workflow .1,579 workflow items generated –June 2015 .1,109 completed (70%) .470 pending (30%) .1,989 workflow items generated –May 2015 .1,744 completed (88%) .245 pending (12%) PCARD TRAVEL TRANSACTIONS PCARD TRAVEL TRANSACTIONS AND WORKFLOWAND WORKFLOW PCARD TRAVEL TRANSACTIONS AND WORKFLOWPCARD TRAVEL TRANSACTIONS AND WORKFLOW PCARD TRAVEL TRANSACTIONS AND WORKFLOWPCARD TRAVEL TRANSACTIONS AND WORKFLOW .Once a DPI has been created and the “S Doc” has ben associated,  the Pcard Workflow item will disappear.  .You don’t have to do anything! .The workflow will go away with an automated process even if you don’t select Option I. .Option I is used when you have not yet processed the DPI for the trip to which it belongs .The DPI must be created within 7 days .The workflow item must be properly associated (selected from the drop down menu) with the DPI USE OPTION IUSE OPTION I .If Option I is selected and any of the following occur, the workflow will come back to you again and again, like the proverbial Bad Penny! .The DPEZ/DPI was never started .The DPEZ/DPI was never completed (Purged after 30 days) .The DPI was disapproved and never resubmitted (Purged after 30 days) .S document was not properly associated on the DPEZ/DPI OPTION I OPTION I ––THE BAD PENNYTHE BAD PENNY uk penny .Option II is used when a DPEZ/DPI has already been processed for the trip where the S Document in the workflow belongs. .Add the S Document to this DPI by following Option II instructions. .Department must identify DZ document where transaction should have been reported. .HSC must review original PCard transaction and DZ indicated to confirm related items. .System “inserts” records in DZ Banner Record. USE OPTION IIUSE OPTION II And after Option II used to clear workflow: WHEN S DOC ADDED AS “PREWHEN S DOC ADDED AS “PRE--PAID OTHER” PAID OTHER” Adding a Travel  S document as “Pre-Paid Other” will cause Workflow to be created The document will appear twice on the DPI when you select Option II to clear the workflow Use Option II to clear transaction and reference original DPI.  Do not create a Zero Dollar DPEZ. .Cannot be used for any employee travel –Must do Zero $ DPEZ .Cannot be used for any foreign traveler –Must do Zero $ DPEZ .Select Option V instead of doing a zero dollar DPEZ for: .Recruits .Guest speaker .Students .Other –must identify/specify .Only when no reimbursement is being given .Must attach required documentation:  copy of original receipt and other documentation such as interview schedule, Lecture flyer, etc. OPTION V: REQUIREMENTSOPTION V: REQUIREMENTS .Pcard department website: http://pcard.unm.edu/ .Key Department Contacts .PCard Policy and Procedure .Pcard Training Materials links .And much, much more!! .MyReports .PNRPCRD –PCard Transaction Report .Pending Workflow Reports .HSC –Contact Stacie Hurley (sebegay@salud.unm.edu/ 272-5460) .Main/Branch Campus –Contact Justin Walters (jwalters@unm.edu/ 277-0057) RESOURCES

Uniform Guidance Circular Explained

Presenter: Jason Galloway
Date: 05-12-2015

Presentation - PDF

Uniform Guidance –How does this affect my Grant? Jason Galloway, Associate Controller HSC Contract and Grant Accounting https://contemplativemammoth.files.wordpress.com/2013/02/phd050611s.gif New Guidance • ReplacesOMB Circulars: . A-21, Principles for Determining Costs Applicable to Grants, Contracts and Other Agreements with Educational Institutions . A-110 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations . A-133 Audits of States, Local Governments, and Non-Profit Organizations • 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards • Effective December 26, 2014 Why Uniform Guidance? • Goals and Objectives• To reform and streamline guidance for all Federal Awards • To ease administrative burden • To strengthen oversight • To reduce fraud, waste and abuse • To eliminate duplicative and conflicting guidance • To provide for consistent and transparent treatment of costs Uniform Guidance • Electronic Code of Federal Regulation • Code of Federal Regulations –Title 2, Subtitle A, Chapter II, Part 200• Supersedes and streamlines requirements from eight different grant circulars into one set of regulations • Made up of six subparts A through F eCFR -Code of Federal Regulation Uniform Guidance • Made up of six subparts:. Subpart A –Acronyms and Definitions . Subpart B–General Provisions . Subpart C –Pre-Federal Award Requirements and Contents of Federal Awards . Subpart D –Post Federal Award Requirements . Subpart E –Cost Principles . Subpart F –Audit Requirements A-21 vs. 2 CFR 200 –Which do I follow? • New awards and supplements should be using the new guidance now • Review your award terms and conditions! (HHS). If your award was dated after December 26, 2014 it will most likely be under the new guidance . Old regulations = 45 CFR Part 74 or Part 92 . New regulations = 45 CFR Part 75 Uniform Guidance Changes • Definitions• “Should” vs “Must” • Must = REQUIRED • Should = Best practices or recommended approach Subrecipient Monitoring -§200.331 • This section provides detailed monitoring procedures such as reviewing financial and programmatic reports, performing on-site reviews, and engaging external auditor to perform agreed-upon-procedures for Subrecipient monitoring. • Risk Assessment and documentation of subrecipient • Reviewing financial and programmatic reports as required by UNM. It is the responsibility of the PI to ensure the programmatic requirements are met prior to approving invoices. • Subrecipient invoice payments mustbe made with 30 days. Can I Charge that to my Grant? Answer: It Depends!! OMB Circular A-21 & 2 CFR 200 Subpart E –The Cost Principles • Define criteria for charging costs • Define direct costs and indirect costs • Discuss selected items of costs • Determine calculation of indirect cost rate COST ACCOUNTING STANDARDS BOARD (CASB) • 501 Consistency in Reporting Costs • 502 Consistency in Allocating Costs • 505 Accounting for Unallowable Costs • 506 Consistency in Cost Accounting Period A-21 Appendix A & 2 CFR 200.419 Factors Affecting Charging of Costs or “The Golden Rules” • Must be reasonable • Prudent person test –what would a reasonable person do in a similar situation? • Necessary to the project • Adhere to all applicable laws and regulations • Adheres to terms and conditions of sponsor and award • Consistent with policies and practices applied uniformly to Federal and University funds • A-21 C.3 & 2 CFR 200.403, 200.404 Newspaper Test • “Contemplating any business act, an employee should ask himself whether he would be willing to see it immediately described by an informed and critical reporter on the front page of his local paper, there to be read by his spouse, children and friends.” -Warren E. Buffett Factors Affecting Charging of Costs • Must be allowable • Costs must conform to any limitations or exclusions set forth in the cost principles or in the sponsored agreement as to types or amounts of cost. See A-21 C.2(d) & 2 CFR 200.403 • The award’s terms and conditions • General Provisions for Selected Items of Cost -A-21 Sec. J.1 –J.54 & 2 CFR 200.420 –200.475 Factors Affecting Charging of Costs • Must be allocable Goods or services involved are chargeable or assignable in accordance with relative benefits received or other equitable relationship . Cost is incurred solely to advance the work, or . Cost benefits both sponsored agreement & other work in proportions that can be approximated by reasonable methods, or . Cost is necessary to the overall operation of institution & is deemed to be assignable in part to sponsored projects, and . No shifting of costs from one fund to another to cover cost overruns, avoid restrictions on agreement or for reasons of convenience • A-21 C.4 & 2 CFR 200.405 Factors Affecting Charging of Costs • Must be consistently treated -Consistency in proposing, charging and reporting costs -Consistently charged in similar circumstances as a direct cost or an indirect cost • A-21 C.2(c), D.1, Appendix A & 2 CFR 200.403, 200.412, 200.413(a) Consistent Treatment • §200.403 (d) states: "A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost." Cost Share • §200.403 (f) states: "Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. See also §200.306 Cost sharing or matching paragraph (b)." What does “Allowable” mean?? • “The fact that a cost requested in a budget is awarded, as requested, does not ensure a determination of allowability. The organization is responsible for presenting costs consistently and must not include costs associated with their F&A rate as direct costs.” -NIH Grants Policy Statement Can this be charged to the Grant? • If a cost cannot meet the criteria of reasonableness, allowability, allocability, and consistency, it is unallowable. • Remember, if it is not allowable on a sponsored fund, then it is not allowable on a cost share account. Direct Cost Definition 2 CFR 200.413 • Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs. See also §200.405 Allocable costs. Examples of Direct Costs • Salaries of researchers/project directors . (including benefit costs) • Laboratory/project supplies • Travel • Technicians • Animal housing/care Special Circumstances-Old • Extensive data accumulation, analysis, entry • Large amounts of travel/meeting arrangements • Large, complex programs • Remote field projects that cannot access normal departmental services • Major projects, e.g. General Clinical Research Centers, center grants, program project grants... • Training grants • Sponsored projects not supported, in whole or in part, by federal funds Special Circumstances-New If special circumstances exist, an F&A cost may be budgeted as a direct cost provided that the cost is: . Allowable . Identified specifically with a proposed project and will advance the proposed work . Cost can be attributed to the proposed project with relative ease and a high degree of accuracy A Special Note About Clerical Support • A-21, Exhibit C . Examples of "major projects" where direct charging admin or clerical staff salaries may be appropriate. • 2 CFR 200.413 . Staff should normally be treated as indirect (F&A) costs. Direct charging may be appropriate if: (1) Integral to the project; (2) Specifically identified with project; and (3) Explicitly included in budget or with agency’s prior written approval A Special Note About Computing Devices • 2 CFR 200.453(c) . Materials and supplies used for the performance of a Federal award may be charged as direct costs. In the specific case of computing devices, charging as direct costs is allowable for devices that are essentialand allocable, but not solely dedicated, to the performance of a Federal award. Document! Document! Document! Document! Why the need for documentation? • Auditors will expect documentation on all transactions. Especially those considered under “exceptional” circumstances or for major projects. • Receipts with enough detail to support the charge • Written explanation of how the expense benefited the project(s) • If you leave the university or department is there sufficient detail that the documentation can speak for itself? Where do you go for answers? • 2 CFR 200 Subpart E of the Uniform Guidance • OMB Circular A-21 • Agency Rules/Guidelines • Program Specific Guidelines • Award Document • Special Conditions • Institutional Policy • Consult with your Fiscal Monitor and C&G Accounting Helpful Hint –See University’s Standard Accounting Resource Manual (SARM) http://sarm.unm.edu/ Allowable or Unallowable You Decide… http://memecrunch.com/meme/KFPS/not-sure-if-cost-unallowable/image.jpg Case Study 1 • Your PI has a U-54 grant that requires a great deal of support in arranging travel for the project leaders from several universities, and internal research projects to attend semi-annual progress meetings. The PI also is coordinating the preparation and submission of several publications and the planning of four separate seminars related to the grant. Do you think he can charge for administrative/clerical services on the grant? Case Study 2 • A PI invited his co-investigator on his Grant, (an expert in the field you are working in and is from another university), to give a talk to your university staff/faculty about the unique discovery they have made on their project. After the seminar the PI and several other faculty members have dinner with the speaker at a local restaurant before their flight home. What, if any, expenses incurred can be charged to the Grant? UNACCEPTABLE PRACTICES • Purchasing items to exhaust unobligated balances. • Rotating charges among projects. • Assigning charges on the basis of the remaining balance to resolve availability of funding issues or to avoid loss of carry-forward balances. UNACCEPTABLE PRACTICES • Assigning charges to an award before the cost is incurred. • Charging an expense exclusively to a single award when the expense clearly has supported other activities. • Applying a unit "tax" to projects to distribute clerical and administrative expenses. • Transferring an overdraft from one sponsored project to another, without express sponsor approval. False Claims Act • Under the U.S. False Claims Act, persons working with federal funds are prohibited from “knowingly presenting, or causing to be presented, to an officer or employee of the U.S. Government or a member of the Armed Forces of the U.S. a false or fraudulent claim for payment or approval.” (VII.J.) What’s the worst that can happen? https://s3-us-west-1.amazonaws.com/ov-file-archive/piece/94/4/728894.0.vetjailfee1.jpg Non-Compliance can lead to: • Disallowed Costs • Reduction in Funding • Award Termination • Additional Compliance Requirements/Oversight • Sanctions • Suspension • Debarment • Criminal Penalties Non-Compliance can lead to: Non-Compliance can lead to: Non-Compliance can lead to: References • 2 CFR 200 Subpart E . www.gpo.gov/fdsys/pkg/FR-2013-12-26/pdf/2013-30465.pdf • OMB Circular A-21 . www.whitehouse.gov/omb/circulars_a021_2004 • False Claims Act. www.justice.gov/civil/docs_forms/C-FRAUDS_FCA_Primer.pdf • New York Times Magazine –October 22, 2006 -An Unwelcome Discovery • Summary of University Audits, Settlements & Investigations Related to Federal Programs. www.costaccounting.org/audits • Published audit findings NSF External Reports. www.nsf.gov/oig/auditpubs.jsp#external • NIH Office of Audit Service . oig.hhs.gov/reports-and-publications/oas/nih.asp • NCURA 16thAnnual Meeting for FRAs . Can I Charge this item to a Grant? –Glenda A. Bullock Questions? Image result for questions

DPIs - A Reviewer's Perspective

Presenter: John Brandt
Date: 03-03-2015

Presentation - PowerPoint
Handout - Word

DPIs – A Reviewer’s Perspective Purpose of this LEARN is to reduced the DPI processing time  It is designed to help you reduce                the time in getting your DPIs paid         more quickly by:  identifying common DPI processing    errors  identifying useful resources  Providing tips & recommendations  This LEARN is not designed to teach you the mechanics of creating a DPI It averages 9 calendar days for a DPI to get payment processed after submitted into Banner Basic Terms  DPI – Direct Pay Invoice. All invoices resulting in an amount paid have a DPI number beginning with an “I”  DPEZ – Direct Pay “EZ” form created in FZADPEZ.  Every DPEZ that is created will have a DZ number. A DPEZ that results in a reimbursement will have both a “DZ” number and an “I” number Has the Central Accounting Office received the DPI? Use the Document Search Data Base  Accessible from Main Campus Unrestricted Accounting website [http://ua.unm.edu/]  Accessible from HSC Unrestricted Accounting website [https://login.unm.edu/cas/login?service=http://galog.unm.edu/]  This allows you to see whether your DPI has been received and approved, or if there is an issue listed that needs to be addressed Document Search Data Base – Finding it on Main Campus website Document Search Data Base – Finding it on HSC Unrestricted website  Document Search Data Base – How to Use it  Document Search Data Base – How to Use it  Document Search Data Base – How to Use it Tracking the whereabouts of your DPI: If database search shows no                     search results, then:  The core office has not received the DPI  Use Banner form FOIAPPH (document      history) to see if the DPI was disapproved  Use Banner form FOAAINP to see what queue or queues still need approval; perhaps a Department Banner Approver has the DPI/backup  Check with your Department approver who signs the DPI to see if that person still has the DPI/backup HSC UA Review and Approval: The Big Picture Approval Process – What Reviewers look for:  “Eyeball the DPI” for correctness – Payee type – Payment/Reimbursement type – Account Code – Travel return date or date of receipt for goods – Per diem rate and number of meals – Mileage rate calculation – Appropriate signatures – Original documents match other listed expenses like lodging or shuttle/taxi Approval Process – What Reviewers look for: Is the DPI taxable per guidelines                     of UNM’s IRS Accountable Plan?  60 days is calculated:  date when DPI received in core office  date of return for travel  date of receipt for goods or other type – Must be approvable, or still taxable after 60 days – DPI taxable if still in Dept’s queue after 60 days Recommend review the Accountable Plan guideline at http://ua.unm.edu/accountable-plan-requirements.html Approval Process – What Reviewers look for:  Payee Type – Anytime the selection is “Foreign                         Individual or Foreign Company, the                       DPI must first go to Taxation – Call Taxation for advice if needed  Most Payees are: – UNM Employee – US Individual or US Company Approval Process – What Reviewers look for:  Payment/Reimbursement Type – Select the correct type – Most departments use only a few types:  Conference Registrations  Dues, Fees  Goods  Moving Expenses  Participant Fees  Travel Recommend review Types of Payments that are Allowed on a DPEZ at http://ua.unm.edu/dpez%20payment%20types.html Approval Process – What Reviewers look for:  Appropriate Account Code – This is the expense account – Do NOT use a revenue account  Some flexibility is allowed here  Certain account codes must be used that pertain to IRS or State requirements, tracking or reporting requirements – Ex. - UNM owned Computers must go to 3189 and Moving Expenses must go to 38L0 Recommend read Account Codes Revisited LEARN at http://hsc.unm.edu/financialservices/accounting/LEARN.shtml Approval Process – What Reviewers look for:  Per diem rate and meals – Verify per diem rate is correct – Hawaii/Alaska/foreign country city is Local Meals rate plus Local Incidental rate – Verify number of meals match airline itinerary and meals paid by conference are subtracted or any allowable business meals are subtracted Approval Process – What Reviewers look for:  Appropriate signatures – If the correct Payment/Reimbursement     Type is selected, the correct signature lines will be printed on the DPI – Have each line signed before forwarding  Approval Process – What Reviewers look for:  Original Documents – Required – If not available, include memo accepting   department responsibility for any duplicate payment; memo must be signed by payee & Dept Head  Restaurant receipts must include detail & list of attendees – If not available, a memo stating no alcohol       was purchased required  Evidence of payment by payee required – Zero dollar balance, credit card payment What causes the processing time to increase for DPIs once Core Office has received the DPI?  DPIs were disapproved because an                        item had to be changed and the DPI                         re-submitted  This adds time to get payee paid – time to make     correction, time to get Department approvals again,         time for Core office to review and approve, etc.  Additional information was requested that is needed to verify and approve the DPI  This adds time to get payee paid – time to get information, time for Core Office to review, etc. About 1 in 8 DPIs received at HSC Core Offices has some issue that needs to be resolved before the DPI can be approved Travel DPIs  Comprise 27% of the denied HSC Unrestricted DPIs  Use the Travel Checklist  Get the per diem correct  Explain any unusual items or circumstances in Business Purpose or Additional Information sections  Include the brochure or agenda  Include airline itinerary  Include original receipts & all prepaid items All the above is needed by Core Office Reviewer to verify DPI is okay to pay DPIs Never Physically Received  Are the next biggest reason for the              denied HSC Unrestricted DPIs  Account for 21%, or 1 in 5 DPIs denied    because we never received them; use DPI database search and FOAAINP  The DPIs are in our approval queue, but never physically received and are denied after 10 business days; this helps alert you that we never received the DPI, and the 60 day IRS Accountable Plan clock is ticking  Check Banner form GUAMESG for message We recommend that departments review their business practices to help reduce this problem Other reasons for DPI disapprovals  Wrong account code was used;                       11% or 1 in 10 DPIs  Insufficient backup received  Insufficient response time to request  Insufficient business purpose  Math or date error  Wrong form or payee type used  Sales tax not allowed  Against UNM policy or guideline All of these reasons can be prevented and reduce the time it takes to get the DPI paid Special Handling Mismatches  This DPI, to an individual or company, is to have the check held for pickup.  If the Special Handling is to “mail document  with check”, a copy of the document needs to be included with the DPI Special Handling Mismatches  This DPI, to an employee, says it will be deposited directly.  It also says to “mail document with check”  This is incorrect. A direct deposit does not include any mailing and must be manually sorted out in AP Helpful Tools  URL handout gives useful sites  Visit the Main Campus website http://ua.unm.edu/travel/travel-information.html http://ua.unm.edu/faqs.html  Read thoroughly and keep within arms length Policies 4000 and 4030 http://policy.unm.edu/university-policies/4000/4030.html  Review HSC related LEARN sessions http://hsc.unm.edu/financialservices/accounting/LEARN.shtml    “Own the Process”  Follow the life of the DPI all the way through to make sure the Payee is paid  Do not assume your job is done after you complete the DPI and send it off  Use the Document Search Database  Look in FOAAINP to see who has not approved  Check FOIAPPH to see history  Use FOIDOCH to see if paid or status  Communicate with the Core Office for assistance Tips for DPI Processing  Should be at least 2 persons set up in your Department’s approval queue; when only one person is in the queue it really slows down the process if the Approver is on leave  Be sure to follow up ASAP and provide the Core Office with any requests for additional information or missing backup  Remember to complete DPI and put DPI back in the queue, then request Department Banner approver to approve it again in the queue  Use the Travel Checklist and put the backup documents in order of the checklist Tips for DPI Processing  Only use one staple per DPI; it is easier for Imaging Department to handle when scanning into Xtender  Do not staple multiple DPIs together  If you need to disapprove your DPI: – Deny the DPI (use Banner form FOADOCU) – Only originators or the approval queue people can deny a document in FOADOCU – Go back into Banner using form FZADPEZ & make your changes – COMPLETE the DPI again, making sure it is back in the Banner queue, get Department Approver to approve it again Tips for DPI Processing  When deleting a record: – Delete the record properly – Manually check the DPI’s calculations  It is not necessary to print DPI form as 2-sided for our benefit; makes it harder to scan to Xtender  Use Banner form FOIAPPH to see DPI document history  Use GUAMESG to look up the reason the DPI was denied by the Core Office  Core office may also send an email with more detail GUAMESG GUAMESG Helpful Banner Screens Summary  “Own the Process” to help narrow down the time it takes to get the payee paid as presented in this LEARN – Review and know where to find the pertinent UNM policies and guidelines – Apply your training and knowledge by carefully creating and tracking DPIs for your department – Apply your training and knowledge by helping others in your Department

Pcard Workflow & Process Changes

Presenter: Laura Putz
Date: 09-16-2014

Presentation - PDF

  PcardWorkflow&Process Changes                                                         Laura Putz, HSC Associate Controller September 16 & 17, 2014   PCardWorkflow -Topics •Statistics •Workflow Theory •Workflow process & clearing items efficiently •New section to assist in efficiency     Statistics Total PCardTransactions –FY14  140,000+   Travel PCardTransactions –FY14  17,000+   Workflow Transactions Cleared –FY14  7,900+   FY14 WorkflowPending  2,100+   FY13 WorkflowItems Pending  1,100+   Pre FY13 Workflow Items Pending  800+   FY15 WorkflowItems Pending  150+     Workflow Theory •Automated process implemented in July 2010 to reduce effort required to reconcile travel transactions •Captured travel transactions beginning 1/1/2010 •More efficient for PCardDepartment •Prior to Workflow, Cardholder statements could not be approved until travel occurred •More efficient for Departments •Tells what has not been reconciled and associated with a DPI/DPEZ   •Internal Control process •Enhances documentation on file for audit       Banner View -FZADPEZ     Unassociated= An “S” document transaction still in the payment category dropdown list as a selection choice when creating a DPEZ   The Beginning •Workflow now triggers 30 days after original transaction date by generating an e-mail notification to PCardholder •Provides link to workflow process           MyUNMMenu Access     Unresolved Pcardtransactions listed     Options to clear PCardWorkflow Items http://www.evolvingtimes.com/wp-content/uploads/2009/04/choices-for-deliberate-creators.jpg Option One Option Two Option Three Option Four http://mayawhite.com/wordpress/wp-content/uploads/2014/05/down-arrow.jpeg Option Five   PCard/ DPEZ Transaction Reconciliation         New Workflow layout     NEW Option V: Non Employee Travel –No reimbursement •Can eliminate most new vendor requests •Can eliminate most Zero Pay DPEZs •Reconciles documentation for internal/external auditors   http://mayawhite.com/wordpress/wp-content/uploads/2014/05/down-arrow.jpeg Option Five     Option V: Requirements •Cannot be used for employee travel that does not have other reimbursement –Must do Zero $ DPEZ •Cannot be used for any foreign traveler –Must do Zero $ DPEZ •Select Option V instead of doing a zero dollar DPEZ for: •Recruits •Guest speaker •Students •Other –must identify/specify   •Reviewed and approved by appropriate core accounting office •Must attach copy of original receipt and other documentation such as interview schedule, Lecture flyer, etc.     Option V:   Zero $ DPI       Overnight accommodations for Great Guy, Guest Speaker for PedsGrand Rounds held on 4/15/2014 –DominiciAuditorium from 1 –3.     Attaching a File     Attaching a File       Attaching a File Easy Peazy–Right???       Option V:   Zero $ DPI   Overnight accommodations for Great Guy, Guest Speaker for PedsGrand Rounds held on 4/15/2014 –DominiciAuditorium from 1 –3.     Option IV –Not traditional Travel •Automated process generated based upon vendors merchant commodity code (MCC). •Brief explanation of expense/business purpose needed. •Reviewed and approved by PCardManager.       Option IV –Not traditional Travel     Conference room spaced for Department Retreat held at XYZ Hotel on July 7, 2014.  35 faculty attendees , 18 staff attendees and three guest speakers plus facilitator.    Option III –The Snooze Button •Defer process as travel occurs in the future. •Workflow will generate again ten days AFTER travel date indicated by PCardholder. •Can clear with automated data validation process is associated, but will keep coming back if no action is taken.       Option III –The Snooze Button         Option II –Oops, I forgot! •Department must identify DZ document where transaction should have been reported. •HSC must review original PCardtransaction and DZ indicated to confirm related items. •System “inserts” records in DZ Banner Record. •Can be used to “submit” Zero $ DPI to FSD offices instead of routing  via campus mail       Option II –Oops, I forgot!       DZ8675309   Before                After       Attaching a File     Attaching a File       Attaching a File Easy Peazy–Right???       Option II –Oops, I forgot!   DZ8675309   Option I •Department does not have to research document numbers.  Most efficient. •Validated nightly with automated process.  Most efficient. •Will come back to Pcardholderif validation fails. •“Best Practice” for DPEZ and PCardtransactions.       Option One       When Items are Rejected •If a workflow item you submit is rejected or disapproved, you will get an email informing you that corrections are required. •System generated notices •Disapproval from Financial Services offices   •The email will tell you possible reasons the workflow failed. •Return to the workflow item and correct the error     When Items have an  Error         When Items are Returned       Attach documentation to Workflow When: •You selected Option II –DPEZ already processed, and the original documentation for the S document you are associating with the DPI was not attached to the original DPEZ •Example: A rental car, paid for by Pcard, was used during a business trip.  It was not associated at the time the DPI for the trip was completed.  Scan and attach the rental car receipt to the workflow for the S document •You selected Option II –DPEZ already processed, and the zero $ DPEZ has not been mailed to appropriate FSD office •You selected Option V –Non EE Zero $ DPEZ •Example: The hotel was the only expense for a recruit’s interview.  Scan and attach the invoice for the hotel and the recruit’s itinerary to the workflow for the hotel S document       For Supervisors and Managers •PCardReconciliation workflow items can be queried •Enter PCardHolders Last Name with “%” character       Query Results and Analysis     Other Assistance Available Unable to find the original PCardStatement, log and receipt? Send e-mail to: HSC Cardholders:HSCFinancialServices@salud.unm.edu Main/Branch Cardholders:Gacal@unm.edu Information to include: Cardholder Name Cardholder Banner ID Number (NOT credit card number) Statement Date (May 5, 2012; December 5, 2013) Vendor and amount (Enterprise, $92.48)   Summary •Section V has been added to enhance the process; zero dollar DPIs can frequently be avoided. •Scanned documents can now be attached, and if the document is otherwise acceptable, the original is not required. •Timely submission of DPEZs with appropriately associated PCardtransactions (S Documents) will eliminate or reduce the number of Workflow items for you to review. •Workflow items will be generated 30 days after the PCardposting date. •Enhancements to be available for use on October 6, 2014.     What are Your Questions? http://www.resumeok.com/wp-content/uploads/2013/04/job-interview-questions-and-answers.jpg  

Cash Management and Money Lists

Presenter: Alana Watts
Date: 08-26-2014

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Cash management & Money Lists August 26 & 27, 2014 Presented by Alana Watts   Introduction •Cash Management Policy 7200 Cash Management   Topics to be Covered: •UNM Bank Account 1.1 Training Required All Individuals handling cash/checks AND their direct Supervisor must take this course 1.3 Petty Cash •Petty cash and Change Funds-must meet cash handling requirements •Petty Cash is the least desirable method to conduct transactions from an accounting and risk standpoint whenever possible   1.4 Use UNM Bank Account •Departments may not set up a bank account for their organization.   1.5 Gifts to UNM Foundation •All Gifts and forms must be delivered to the UNM Foundation for processing •Do not deposit these amounts yourself •https://www.unmfund.org/unm-depositors-page/ •Foundation Contact is Jodi Wilson  Jodie.frettern@unmfund.org, 277-5871   Billings •External Billings are billed through the Non Student Accounts Receivable  System (NSAR) Departments should not create their own invoices outside of NSAR •Assures compliance with State of New Mexico statutes to have an accounting of all of UNM Accounts Receivables Billings Using the NSAR module:  Posts revenue to your index immediately Billings •If you do, bring them to Unrestricted Accounting, and we will deposit and apply payment for you   2-Deposits •Deposit cash and checks received by the next working day •The Cashier Department is available to pick up deposits to assist in compliance   Depositing Funds Received Documentation must be maintained should it become necessary for reconstruction •Confidentialinformation such as                Social Security numbers must not be kept in any format Money Lists Money Lists sent to the Bursar’s office should have complete information in all fields •Comments are important! On a Side Note: MOST COMMON ERROR: Use of 07Z0-Other Sales Revenue when should be 07ZZ-Employee Reimbursement   Money Lists •The Department Money List copy should include the Check backup  attached Money Lists •Check #2 backup attached Money Lists •Check #1 copied and attached Money Lists Money Lists •Confirm that the Cashier’s receipt matches the Money List Total and attach it to the Money List copy: Banner Reconciliation Handling Credit Card information •Federal law requires that the University protect against exposure and possible theft of account and personal cardholder information that has been provided to UNM •Redact scanned information before sending  via email or saving for reference Redact ALL Account  Numbers   Credit Card Changes Bursar’s office does not receive walk in CC payments •Department that have credit card terminals are still allowed to process their batch totals as their normal course of business. Credit Card Processing •For Credit Card collections UNM offers TouchnetMarketplace Credit Card Processing •Touchnetis already used to collect credit card payments by many UNM Departments •Touchnetcollection is set up for your department by Patrick Patten in the Bursar’s office •You will be automatically emailed each time a credit card deposit is received •Touchnethas a report function that will let you know by period who has paid, and how much they paid by credit card •These TouchnetMarketplace reports will assist with reconciling your credit card revenue 3. - Internal Control 3.1 – Limiting Access •Access to monies must be restricted to the employee responsible for monies 3.2 – Recording Payments Immediately record transaction by cash register or issuing a pre-numbered receipt Employees are responsible for an assigned block of receipts.  Maintain a copy of the receipt in the department 3.2 – Recording Payments Two people are required to open the mail Person unopened Two people are required to empty collection boxes (ie: parking meters, copy machines, etc.) Two people are required to record the monies received 3.2 – Recording Payments •Immediatelyendorse the check  upon receipt SSN anywhere on the check •Financial Services recommends                                 as a best practice: all checks  3.2 – Recording Payments •Wire Transfer Payments-set up through the Credit, Collections, and Merchant Services •Notify CCMS of index & account code if you are expecting an ACH remittance •Contact: SorayaSalazar,  277-0969  sasalazr@unm.edu 3.3 – Segregation of Duties Reconciliation Compare Bursar’s Deposit Receipt to Check Log and verify posting in Banner In Summary •The Foundation processes allgifts •Use TouchNetMarketplace to process credit card payments Cash Management Contacts Schedule Pickup-Cashier Department-Amy Montoya ambachman@unm.edu, 925-9266 NSAR-HSC Campus:  Stacie Hurley Shurley@salud.unm.edu, 272-5460 NSAR-Main Campus:  Justin Walters Jwalters@unm.edu, 277-0057 Gift Processing-UNM Foundation: Jodi Wilson Jodie.frettem@unmfund.org, 277-5871 TouchnetMarketPlace-Bursar’s Office: Patrick Patten ppatten@unm.edu, 925-9252 Credit Card Merchant Services:SorayaSalazar, sasalazr@unm.edu, 277-0969 What are your Questions?

How to Reconcile Indices

Presenter: Terry Shoebotham
Date: 06-10-2014

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Index Reconciliation Fundamentals Part One of Three Terry Shoebotham Business Management Specialist 6/10 & 11/2014 Table of Contents DEFINITIONS AND EXPLANATIONS ................................................................................................... 1 ACCOUNT ................................................................................................................................................... 1 SOURCE DOCUMENTS.................................................................................................................................. 1 INDEX ......................................................................................................................................................... 1 INTERNAL FILES ......................................................................................................................................... 1 PI................................................................................................................................................................ 2 WHAT DOES RECONCILIATION MEAN? ........................................................................................... 2 REVENUE.................................................................................................................................................... 2 SALARIES ................................................................................................................................................... 2 OTHER EXPENSES ....................................................................................................................................... 2 DOCUMENT ORGANIZATION ............................................................................................................... 2 CREATE A FILE FOR EACH OF YOUR INDICES ............................................................................................... 3 ORGANIZING FOLDER CONTENTS ................................................................................................................ 3 OTHER METHODS ARE FINE........................................................................................................................ 3 TO RECONCILE AN INDEX, WHAT DO I NEED TO HAVE? ........................................................... 3 REPORTS..................................................................................................................................................... 3 REVENUE INFORMATION ............................................................................................................................ 4 P AYROLL INFORMATION............................................................................................................................. 4 SOURCE DOCUMENTS................................................................................................................................. 4 A RED PENCIL ............................................................................................................................................ 4 WHAT DO YOU NEED TO KNOW TO RECONCILE AN INDEX?.................................................... 4 HOW TO GET THE SOURCE DOCUMENTS ..................................................................................................... 4 WHAT BANNER REPORTS YOU WILL USE, AND HOW TO GET THEM ............................................................. 5 HOW TO GET PAYROLL INFORMATION........................................................................................................ 5 HOW TO GET REVENUE INFORMATION ....................................................................................................... 5 WHAT ACCOUNTS ARE SOMEONE ELSE’S RESPONSIBILITY ........................................................................ 5 HOW DO YOU RECONCILE AN INDEX? ............................................................................................. 5 PRINT YOUR BANNER REPORT.................................................................................................................... 5 OPEN YOUR UNCLEARED FOLDER .............................................................................................................. 6 COMPARE THE TWO.................................................................................................................................... 6 Payroll Expenses................................................................................................................................... 6 General Expenses.................................................................................................................................. 6 INVESTIGATE DISCREPANCIES-GENERAL EXPENSES.................................................................................. 7 CREATE AN INDEX RECONCILIATION SUMMARY ........................................................................................ 9 ASSOCIATED REPORTING..................................................................................................................... 9 FLOW CHART -INDEX RECONCILIATION PROCESS ...................................................................10 FLOW CHART – DOCUMENT ORGANIZATION...............................................................................12 Definitions and Explanations Account – An account is the four digit number that represents the place revenue or expense is recorded in Banner. For example, 3100 is the account code for Office Supplies Expense. You can find a list of UNM accounts, and their definitions, at http://ua.unm.edu/account-codes.html. Source documents – These are original documents, or copies of original documents.  They are the documents that validate that an expense occurred. They may be UNM Bookstore receipts for merchandise purchased. They may be Internal Invoices from UNM Service Centers. They may be copies of DPIs or copies of invoices from outside vendors. They may have explanatory e-mails or other documents like seminar registration forms attached to them. Other source documents include P-card receipts/reports, internal UNM Purchase requisitions, Purchase requisitions, Blanket Purchase requisitions, and Non-Standard Payment forms.  This list is not inclusive. Index – An Index is the six digit number that accumulates revenue and expenses, in accounts, for a given project. The index may be unrestricted; such as one for Instruction & General funding. The index may be restricted and associated with a grant. All expenses for a given index should be reconciled each month. Post -An item is posted in Banner when it has been recorded in the accounting data base. Only posted items appear on Banner accounting reports Internal Files – Internal Files are the files you set up to make your job easier. For Account Reconciliation, these will work: Uncleared Folders – For each index create an Uncleared manila folder. This folder place copies of source documents for each expense for that index as these expenses occur. Attach these source documents to the reconciliation and move them to the Account Reconciliation Folder at month end.  Payroll Folders – For each index create a Payroll manila folder. In this folder place copies of all Payroll reports/documentation each month. Attach these to the reconciliation and move them to the Account Reconciliation Folder at month end. Index Reconciliation Folders – For each index create a manila Index Reconciliation Folder. In this folder place your completed index reconciliation package each month.  This consists of: . The completed Index Reconciliation Summary [see appendix] . The My Reports Detail Report [FOROLDS]. You have checked off the amounts on this report and the amounts on your source documents as you reconciled the index. .  The payroll report/documentation. You checked off the detail on the payroll report, and made sure the detail matches the internal detail from your department documentation concerning who is to be charged, and what percentage of their salary is to be charged to this index. .  The source documents and any related schedules created in your department for expenses. You have checked off the detail on these and on your Detail MyReports Report. These are stapled together each month to form a monthly reconciliation package for each index.  This is your completed index reconciliation package.  This is filed in your Index Reconciliation Folder each month. Put the group of each index’s folders in a green hanging folder, labeled for that index.  Now you have all your information for each index easily accessible. PI-Principal Investigator. This is the primary person in charge of a grant. He or she may have multiple grants. Each grant has at least one index and may have more than one. What does Reconciliation Mean? Reconciliation means checking the source documents that show what expenses should have been charged to an index, against the expenses that were actually charged to that index. Any discrepancies are then investigated and corrected or explained. This is done monthly. Revenue Comparing the revenue your index receives in Banner with expected revenue, and investigating any variances. Salaries This includes: 1) Making sure the people (salaries) being charged represent the people who should be charged to that index. 2) Making sure the correct percentage of their salary is being charged. Other Expenses This includes: 1) Knowing what expenses should have been charged to the index. 2) Checking to see that they were charged to the index. 3) Checking to see that no one else’s expenses were charged to that index, in error. 4) Understanding F&A charges, and what they should be for the index. Document Organization Document Organization is for your benefit. Well organized documents make it easy to find documents and complete reconciliations.  Here is a suggested method: Create a file for each of your Indices .  Create a Green Pendaflex folder for each index. Label it with the index number and name. .  Create three manila folders for each index.  Label each with the index number. In addition, label one “Index Reconciliations”, one “Uncleared Docs”, and one “Payroll”.  Some departments may also have one for “Revenue”. Organizing folder contents .  For your Uncleared folders, you may wish to organize by type of document, then within each type of document [DPIs, Requisitions, Invoices, Other] by document number or date created. .  For your Payroll Folder, you may wish to organize by date, most recent date first in the folder. When a month is completed, you will removed the payroll documents for that month and staple them to your Index Reconciliation. .  For your Index Reconciliation folder, place the documents in month order, most recent month first in the folder. .  You will finish your monthly reconciliation by attaching all of your documents together. o  First put the Index Reconciliation Summary that shows your reconciled items for the month, and how they were resolved. o  Second, attach your MyReports Report [FOROLDS] that you checked off with your red pencil. o  Third, put your payroll report, also checked off. o  Forth, put all your documents of origination, in the order that they were checked off on the report.   Other Methods are Fine .  If your department has a different method of organizing and filing documents, you may use it. There is no one correct way to organize the information. Just make the information easy to find and use. .  The important thing is that the indices get reconciled each month and any discrepancies are promptly resolved. To Reconcile an Index, what do I need to have? Reports. a.   You need printed copies of what expenses were charged in Banner, by account, for the period. MyReports reports are recommended. FOROLDS detail works well. Run this report for the month, AFTER month end has closed. The Month End Close schedule can be viewed at the Financial Services Resource website at http://fssc.unm.edu/ or you can subscribe to Fast Info question 897. b.   You may use excel worksheets to assist you in accumulating the Banner numbers in a format your department prefers. You must still have Banner documents to show where your Banner numbers came from.   Revenue Information c.  If you are reconciling an unrestricted index you need information from your Department Administrator concerning what revenue is expected. If you are reconciling a restricted index you need a copy of the Notice of Grant Award from the funding agency. Payroll Information d.  Payroll reports for the index showing actual salary paid to each salary and benefit account, by employee. MyReports report FNRSLBE by index will provide this information. FNRLDST will show you the percentage of the employee’s distribution that should be in each index. e.  A budget or other internal document telling you the names of the employees that should be charged to that index, and what dollar amount or percentage of their salary should be charged to that index. Source Documents. f.   You may need to learn how to obtain some of these documents, such as monthly telecom bills, Xerox bills, internal service center bills, and so forth. You may need to contact the person in charge of producing or approving the bill to begin getting a copy each time one is produced. g.   If you do the accounting for your department, this may be as simple as saving a copy before sending the original to your Financial Services Office for approval and payment. A source document is needed for every expense appearing on the Banner Detail Report.   A Red Pencil h.  You will check off each item on the payroll report and each source document, as you locate it in the detail of your Banner report listing expenses for the month for the index. The best practice is to initial and date next to the check mark. What do you need to know to Reconcile an Index? How to get the Source Documents a.   You need to know who is producing the internal documents [DPIs, etc.] that result in charges to your index. i.  You need to get copies, or you can’t reconcile. If this process is new to your area no one may know you need the copies. You have to find the correct people and let them know. ii.  You need copies of all P-Card documents that are expensed to your index. b.   You need to know how to run bills that are available to you, such as ITS Communication Network Services (internal telephone bills). i.  All charges should have documentation. If you do not have records in your files, you will need to track it down in order to determine if it has been recorded in the correct index.. What Banner Reports you will use, and how to get them c.   For restricted or unrestricted indices, you can use MyReports report FOROLDS. Run after month end close. See the Financial Services Resources website http://fssc.unm.edu/ for the monthly schedule, or subscribe to Fast Info question 897. d.   Banner reports are found in MyReports. Sign in through My UNM, the Employee Life tab.   How to get Payroll Information e.  You need to know the names of the people who should have salary charged to your index, and what the amount or percentage is. i.  Your administrator or the Principal Investigator should be able to give you this information.  ii.  You need to know how to get the basic Salary Report [FNRSLBE], by index, and by person within each index. Each department should have a person authorized to view payroll reports. MyReports report FNRLDST will show you all indices for an employee or an organization code. How to get Revenue Information f.  Discuss this with your administrator. You must have this information to reconcile these accounts. What Accounts are Someone Else’s Responsibility g.  Some accounts that you may not be responsible for reconciling include Banner Tax, some revenue accounts, and F&A. These should be looked at each month to ensure that the amount is reasonable and valid.   How do you Reconcile an Index? Once you have the information you need, reconciling is easy. The first time or two you may find it more difficult because it is new. Once you fall into the routine of doing this each month, it will take little time. Reconciling will allow you to catch mistakes made in the Banner system, and have them corrected quickly. Print your Banner Report a.  Print the month end FOROLDS detail report for your index, for the month just ended. i.  After month end has closed you can easily reconcile your index.  This explanation is assuming you are reconciling after month end has closed.  Open your Uncleared Folder b.  During the month you have accumulated numerous source documents for the index you are reconciling in this folder. Compare the Two Payroll Expenses 1)  Locate what you can match, and clear it. a.   Open your payroll folder. b.   Compare the totals of the Banner Report to the totals of your payroll report for that index. Check off the Banner Report for each account total that matches the payroll report.  They should match! c.   Compare your list of staff names from your department that are supposed to be charged to this index, with the names on the payroll report. Check off each name on the Payroll report that matches your list. Write down any names that are missing, or “extra” on your Index Reconciliation Summary. d.  Compare your list of staff amounts/percentages with the amounts on the payroll report. They should match. Write down any that do not match on your Index Reconciliation Summary. 2)  Investigate Discrepancies-Payroll. a.  We will assume all your payroll items matched. If not, discuss with your administrator.  You may need to submit i.  An EPAF-to change an employee’s location/allocation ii.  A PHAREDS-to correct an error in a posted salary amount. iii.  Be aware that adjustments to payroll made during the month that you are reconciling will cause your totals to be different than what you may have expected based on other payroll reportse. As long as the adjustments were correct, this is acceptable. General Expenses 3)  Locate what you can match, and clear it. a.  Find the first non-payroll item of expense [possibly office expense; account 3100]. Let’s say there are two lines under this account, one for $12.52, and one for $219.18. b.   Find the source documents in your Uncleared Folder for this account. You find three.  One for $12.52, one for $83.67, and one for $422.12. c.   You put a check mark next to the $12.52 on your Banner report. You put a check mark on the document of origination that says $12.52. You initial and date this document. Then you take it out of the Uncleared folder, and set it aside for later attachment to your Index Reconciliation Package. One item is reconciled. d.   You look at the document for $83.67. You note that the date on the document is the last day of the month you are reconciling. You are not surprised, therefore, that it is not yet recorded in Banner. You put it back in your Uncleared folder for next month. e.   You look at the document for $422.12. You note that at the bottom of the invoice the expense is being split between three different indices. One of these is the index you are reconciling. Next to each of these index numbers, is an amount. The total of the three amounts equals $422.12. The amount next to your index number is $219.18. You put a check mark next to the $219.18 on your Banner report after you put a check mark by the $219.18 on the source document, initial, and date it. Then you take it out of the Uncleared folder and set it aside for later attachment to your Index Reconciliation Package. Congratulations! You have reconciled the first account in your index for this month! f.   You continue to check the source documents against the charges listed on your Banner report, for each line, for each account. You continue to put red check marks on both the document and report, when they match. g.   When a source document does not match the Banner report, you fill out a line on the Index Reconciliation Summary. h.   If you have any items without a checkmark on your Banner report when you have reviewed all of your source documents, you list that item on a line on the Index Reconciliation Summary page. 4)  Discrepancies are Listed on Index Reconciliation Summary a.  When you are done, all have matched exactly, except three: i.  One number in Banner, for $87.32 is simply not in your folder. You have no idea what it is or where it came from. You have listed it on your Index Reconciliation Summary. ii.  One number in Banner is for $.03 less than the invoice in your folder. Otherwise, it matches the index, account, and time frame. It is for the same vendor. You have listed it on your Index Reconciliation Summary. iii.  One document of origination, a DPI for $2,940, is still in your folder, though it was created over a month ago. You have listed it on your Index Reconciliation Summary. Investigate Discrepancies-General Expenses There are three types: 1)  Amount on Banner Report does not match Source Document 2)  Amount on Banner Report but there is no Source Document 3)  You have a Source Document, but you cannot find the amount on the Banner Report This is the point at which you may need help. Do not hesitate to ask for it. You must now figure out what to do about your differences. In the example above, the differences that exist are the $87.32, the $.03, and the $2,940. .  The easiest is the $.03. You have determined that this charge almost certainly is for the invoice in your Uncleared Folder. It is for the same index, the same account, and the same time frame. The only difference is that Banner paid $.03 less than was billed. Perhaps this is an immaterial difference. Mark on this invoice that it was paid in Banner (write down the month the charge appeared in Banner; the month you are currently reconciling), and was paid $.03 less than billed. Put a check mark on your Banner report, next to this item. Remove the source document from your Uncleared folder, and set it aside for attachment to your Index Reconciliation Summary. Write “Immaterial” in the note section on your Index Reconciliation Summary line that lists this item. Your department administrator will help you decide at what level of difference [generally, less than a dollar] you can use this approach. You will report any patterns of errors, or irregularities that you find, even if they are each very small. .  In Banner, but no Source Document. This is the $87.32. One of two things has happened. Either you did not get a copy of the source document, or this was incorrectly charged to your index. You need to determine which of these happened. Drill down in Banner, figure out the document number, pull it up if it is in XTender and print a copy. You can also call the originator. Ask for help if you need to.  Track your progress on your Index Reconciliation Summary page by including notes. .  Source Document in Uncleared file but no Banner Posting. This is the $2,940.  One of two things has happened. Either it has not been charged at all, or it has been charged to the incorrect index. You need to determine which of these happened. You have the DPI number and you can check in Banner to see what its status is. If it is posted, you can figure out where. If it is not posted, or if it has been cancelled, more investigation is needed. Does someone in AP need more documentation? Is the Financial Services Office waiting for a missing piece of documentation? Did the DPI get lost? Track your progress on your Index Reconciliation Summary by including notes. Create an Index Reconciliation Summary iv.  There are several ways to create an Index Reconciliation Summary. Many departments have well developed processes that should be followed. If no specific format is required by your department administration, the following uniform method will work: 1.  Use the Index Reconciliation Summary template on the Financial Services website under forms. This is an excel worksheet that allows you to list your discrepancies, which are called “reconciling items”, and explain their status. As each is resolved, add a note explaining how it was resolved. 2.  File this completed Index Reconciliation Summary in your Account Reconciliation folder, after attaching it to the MyReports FOROLDS Index report, the payroll report, and the checked off Banner source documentation. This is the index reconciliation package that you keep for each fiscal year, for each index.   Associated Reporting Once you have your Index Reconciliation files up and running, you may find it helpful to produce other related reports. One such report is a “Balance Remaining” report that many PIs, Deans, and Chairs find useful.  This report is produced each month. Many different templates are used by different departments to produce these reports at UNM. The goal is to help you quickly, easily, and accurately tell departmental personnel what their remaining balance is (How much they have left to spend this year on this index), after subtracting all actual and expected expenses. Meet with the person primarily in charge of each index to review this report each month.  This gives you the opportunity to find out about changes in personnel, or new expenses that will be charged to the index in the coming months. Meeting monthly [15 minutes is usually long enough] also allows departmental personnel to ask questions. By keeping the lines of communication open, everyone will benefit. Flow Chart -Index Reconciliation Process Determine what indices you are reconciling. Payroll Reports for each index. Compare each item on your Banner Expense Report with documents of origination. Compare People and their percentage of Salary with your departmental staff list/percent of salary.     Flow Chart – Document Organization DPIs, JVs, Requisitions, FNRSLBE-Invoices, shows dollars Other FNRLDST- shows distribution For each Month, stapled together: . Index Reconciliation Summary . FOROLDS report for the index . Payroll Report(s) for the month .  Documents of origination that cleared during the month   Intermediate Index Reconciliation Using Banner Screens and MyReports Reports Part Two of Three Terry Shoebotham Business Management Specialist 6/10 & 11/14 Table of Contents BASIC REVIEW – INDEX RECONCILIATION PROCESS ................................................................. 1 SOURCE DOCUMENTS ................................................................................................................................. 1 BASIC ACCOUNTING INFORMATION: .......................................................................................................... 1 FINDING AND RESOLVING PAYROLL DISCREPANCIES .............................................................. 2 PAYROLL TOOLS ........................................................................................................................................ 2 PAYROLL INFORMATION............................................................................................................................. 2 Pay ID................................................................................................................................................... 2 Disposition Codes ................................................................................................................................. 2 Sequence Numbers................................................................................................................................ 3 Earnings Codes..................................................................................................................................... 3 USING PAYROLL REPORTS AND SCREENS................................................................................................... 4 PHAREDS............................................................................................................................................. 4 FNRSLBE (was Hyperion FSH0001).................................................................................................... 8 FNRLDSP (was Hyperion FSH0002) ..................................................................................................10 PZRORGH ...........................................................................................................................................13 RESOLVING PAYROLL DISCREPANCIES......................................................................................................14 FINDING AND RESOLVING OTHER EXPENSE DISCREPANCIES ...............................................15 OTHER EXPENSES TOOLS ..........................................................................................................................15 OTHER EXPENSE INFORMATION ................................................................................................................16 Transactions Codes..............................................................................................................................16 FOROLDS Example.............................................................................................................................17 Banner Screens ....................................................................................................................................18 Journal Vouchers.................................................................................................................................18 Manual Journal Vouchers....................................................................................................................18 Feed Journal Documents .....................................................................................................................19 P-card invoice......................................................................................................................................19 DPEZ invoice.......................................................................................................................................20 Regular Invoice....................................................................................................................................20 Encumbrances......................................................................................................................................20 USING OTHER EXPENSE REPORTS AND SCREENS.......................................................................................21 FGIDOCR............................................................................................................................................21 FOIAPPH.............................................................................................................................................21 FOATEXT ............................................................................................................................................21 FOAAINP.............................................................................................................................................21 FAIINVE ..............................................................................................................................................21 FOIDOCH ...........................................................................................................................................21 FGIBDST .............................................................................................................................................22 FGITRND.............................................................................................................................................22 FRIGITD..............................................................................................................................................22 FRIGTRD.............................................................................................................................................22 FOROLDS............................................................................................................................................22 FGRGLDS............................................................................................................................................22 FRRGLDS ............................................................................................................................................22 RESOLVING OTHER EXPENSE DISCREPANCIES ..........................................................................................22   Basic Review – Index Reconciliation Process Index Reconciliation Fundamentals explains the basics of index reconciliation.  Some basic definitions are repeated in the Appendix section.  Source Documents Copies of source documents are used to reconcile an index. •   Revenue source documents –   Copies of money lists & checks –   Department cash reports –   Copies of accounts receivable entries –   Copies of invoices mailed to customers –   Journal entries   •   Expenditure Source Documents –   EPAF/ PHAREDS documentation, which may include: •   Signature authorization email from authorized individuals, with amounts/personnel names & dates •   Documentation of business purpose for change   –   DPI Requests –   Purchase Requisitions/Orders/Invoices –   P-card Transaction Logs, Statements, and invoices –   Invoices from internal departments or external vendors –   Journal entries   Basic Accounting Information: Acct Type  Ledger  Banner Account Starts With  Normal Balance  Increase  Decrease  Assets  General  A  Dr.  Dr.  Cr.  Liabilities  General  L  Cr.  Cr.  Dr.  Net Assets  General  N  Cr.  Cr.  Dr.  Revenues  Operating  0,1  Cr.  Cr.  Dr.  Expenses  Operating  2-9  Dr.  Dr.  Cr.  Encumbrances  Operating  2-9  Dr.  Dr.  Cr.  Reservations  Operating  2-9  Dr.  Dr.  Cr.  Finding and Resolving Payroll Discrepancies Payroll Tools When you are researching a discrepancy between what you expected to see in Banner and what is actually posted in Banner in the payroll area, you will use these Banner screens and Payroll reports. Type  Name  Allows viewing of:  Banner Screen  PHAREDS  Individual Employee Payroll charges by job & index Also allows you to redistribute labor charges.  You can also use this screen to see the changes that have been made to an employee’s labor distribution.  MyReports  FNRSLBE  Salary Labor Benefits and Encumbrances This is where original payroll distributions and adjustments can be seen once they have posted.   MyReports  FNRLDST  Labor Distribution Report Provides current and future payroll distribution information.  Report can be produced by Organization, Employee or by Index.   ePrint  PZRORGH  Contact personnel for each hiring organization.  Payroll Information Pay ID This is an alphanumeric code assigned to each pay period. The first character indicates whether the employee is paid on a bi-weekly (2) or monthly (5) basis. The last two characters signify the actual pay period as specified on the payroll calendar. The payroll calendar can be found at http://payroll.unm.edu/pay-schedules.html For example: 2R19 represents regular pay for an hourly employee for the period of work beginning 8/23/14 and ending 9/05/14. 5R8 represents compensation for August 2014 for a salaried employee. Disposition Codes Payroll disposition codes indicate the status of payroll postings.  For example: 60  Redistribution approved by Central Accounting but not posted to Banner Finance (should post next business day)  48  Pending or Completed PHAREDS transaction  Sequence Numbers Sequence Numbers are assigned to each payroll process: Code  Use  0  Original Payroll Distribution  1  Void of original distribution  2  Reposting of Payroll Distribution  3  Void of sequence number 2  distribution  4  Reposting of Payroll Distribution  Earnings Codes Earnings codes are three digit numeric values that represent the category of earnings which have been paid.  Common earnings codes are: Code  Description  010  Regular Earning  012  Temporary Earnings  022  High School Student  015  Overtime  020  House Staff  024  Stipends  025  State Work Study  027  Federal Work Study  029  Regular Student Earnings  037  Graduate Extra Compensation  038  Graduate Summer Session  170  Annual Leave  180  Sick Leave  200  Extra Compensation  202  Incentive Pay  430  Partial VA Funding  432  Full VA Funding  Using Payroll Reports and Screens PHAREDS This Banner Screen is used to make labor redistributions.  You can see the salary of your employee as it originally was posted and any redistributions of that salary on this screen. Go to the PHAREDS screen.  You must have authorization to access it to proceed. Type in or search for the employee ID: Selecting “List for Employee” will allow you to query on your employee by name or Id.  This query brings up the following: Find and select the person whose salary you need to see, and double click.  Then select the drop down menu on “Payroll ID”: This will bring up the following screen. If any dispositions are 48, they are pending redistributions that have not been posted yet. If there are approved or posted redistributions, they will show on this screen with a disposition of 60 or higher. By selecting a pay period (double click), you will see the next screen. The “Earning Labor Distributions” portion of the screen will show to what indices the pay period is currently distributed. As you “Next Block” through PHAREDS, you will be able to access the “New Earnings Labor Distributions” section to adjust where the pay distribution can be changed. To Access the Payroll MyReports Reports: Sign into MyUNM Select Employee Life tab You will see the following screen: Select MyReports to access MyReports, Select HR Reports to access other HR Reports. FNRSLBE (was Hyperion FSH0001) This MyReports report shows you historical payroll information From the MyReports Finance tab, select the desired report.  In the example that follows, FNRSLBE was selected from Finance/F All Campus Reports.  You select the month and year of the report you want, and how you want the information reported. Report grouping options include: . By index – grouped by account code . By index – no grouping . By organization by index . By organization by employee . Employee name . Summary by Index . Fringe Rate by Org . Banner ID In the screen above, 2014 February was selected, and the Report by method selected was Index. Index 258000 was selected. The first page of this report follows.  Each section represents one employee who has salary posted to that index in February.  At the end of the report a total section exists. FNRLDSP (was Hyperion FSH0002) When this report is selected, the following screen appears.  You may group the report by Labor Distributions by: . Employee . Org . Index . Fund . Grant In this case the report is run by employee.  Type the employee’s name in the search field and select “find”.  A list will be displayed.  Select the desired employee and run the report by selecting the button on the lower left (1). You select the organization, and whether you want the information reported by employee or by organization. In the following example, Labor Distribution by Org was chosen for 258B. This is the first page of the report: This report shows labor distribution information by employee.  The payroll distribution percentage is applied to the bi-weekly or monthly salary expense to determine what amount is posted to each index.  The distribution percentage is not always 100% of the employee’s salary. This report can be useful when reconciling errors in the payroll section of an index. Accessing E Print reports: To access the following ePrint reports, sign in to MyUNM, and go to E-Print repository indicated below. PZRORGH When at the e print screen (above) showing this report, select the report you need. The dates run are shown at the right. If you select “PDF”, you will pull up a copy of the report. “Text” will allow you to download the report, and the magnifying glass will allow you to search. Below is the first page of this report. This report will give you the name of the Financial Manager and Consultant at the hiring organization.  This information is useful if you need to know who to contact about a salary issue in a particular organization. You can look up your employee’s organization in the directory on My UNM. Resolving Payroll Discrepancies When you have found a discrepancy, you must determine who has the authority to correct it in PHAREDS. Generally only the hiring organization of the employee has this authority. If the employee belongs to another hiring organization, you will contact that hiring organization and ask them to make the adjustment.  Use report PZRORGH in order to find a contact person if necessary. If the employee with the discrepancy belongs to your hiring organization, your department can make the redistribution. PHAREDS is the Banner screen used to make the redistribution. Each department has someone with security clearance to make these redistributions. Make sure a clear business purpose is included when the redistribution is entered so it can be approved and posted quickly. If the redistribution is showing on this report, it has been approved and posted. If it has been disapproved, it will again show as “pending” in the banner screen PHAREDS. If it has posted, it will be on the FNRSLBE report, and you will see a balance change on Banner screen FRIGITD or FGIBDST. Finding and Resolving Other Expense Discrepancies Other Expenses Tools When you are researching a discrepancy between what you expected to see in Banner and what is actually posted in Banner in any expense area other than payroll, you will use these Banner screens and Hyperion reports. Type  Name  Allows viewing of:  Banner Screen  FGIDOCR (Doc. Retrieval Inqury Form)  Posted documents (JV, invoice, requisition, PO, encumbrance).  Provides dates, short description and index information.  Use “Options” to access Document text screen (FOATEXT).  Banner Screen  FOATEXT (General Text Entry Form)  Document text screen (JV, invoice, requisition, PO, encumbrance).  Reasoning behind posted document.  Banner Screen  FOIAPPH (Doc Approval History Form)  Approval history for pending and posted items.  Includes information on JVs, DPI invoices, requisitions, POs, and encumbrances  Banner Screen  FOAAINP (Doc Approval Form)  Pending approval(s) for JVs, DPI invoices, and requisitions  Banner Screen  FAIINVE (Invoice/Credit Memo Form)  Vendor Information  Banner Screen  FOIDOCH (Doc History Form)  Payment history information for checks, Invoices, Requisitions, Purchase Orders, Encumbrances. Ability to access documents scanned into Xtender  Banner Screen  FGIBDST (Org. Bud. Status Form)  Budget & actual index summary activity by account code  Banner Screen  FGITRND (Detail Trans. Activity Form)  Account Code Detail Transaction Activity –Fiscal Year  Banner Screen  FRIGITD  Grant Inception to Date Summary activity  Banner Screen  FRIGTRD  Grant Account Code Detail Transaction Activity – Inception to date  MyReports  FOROLDS  Operating Ledger Detail & Summary (Income Stmt)  MyReports  FGRGLDS  General Ledger Detail & Summary (Balance Sheet)  MyReports  FRRGLDS  Grant Ledger Detail & Summary (Grant Balance Sheet)  Other Expense Information Other expense items posted to your index that may not belong to your index need to be researched.  Any items that belong in another index must be moved to the correct index. With all expense items you will use a MyReports report to look at the detailed transactions that have posted. For unrestricted and restricted accounts, FOROLDS is generally used. You may also drill down on Banner activity from screens FGITRND (unrestricted indices) and FRIGITD (restricted indices) Transactions Codes The following table outlines the types of items you may find on your transaction detail report: Document Type  Document Id  Type  Rule Class Code  Reference on Example below  Manual JV  Jxxxxxxx  JV  JE2, etc.  2  Journal Feed Document  Begins with two letters, such as CHxxxxxx  JV  JFD/JFL/JFH  PCard Transaction  Sxxxxxxx  INV  IPNI  1  DPEZ Transactions  Ixxxxxxx  INV  DP1  3  Regular Invoice  Ixxxxxxx  INV  INEI  Requisition ­Reservation  Rxxxxxxx  REQ  REQP  Establish Purchase Order  Pxxxxxxx  PO  PORD  Purchase Order-Request Liquidation  Pxxxxxxx  PO  POLQ  FOROLDS Example The report was run for index 258000 for the fiscal year to date in PDF. The following document types are shown below: 1) PCard document-supporting documents with PCard log 2) Manual Journal Document 3) DPEZ Invoice Transaction Banner Screens See appendix for commonly used banner screens and their usage/application. Journal Vouchers Journal entries encompass many different types of transactions, including: . Internal Sales . Allocation of revenue . Transfers of funding between programs . Cost transfers of expenditures . Correction of errors . Feed of payroll and benefits information Finding Where an Unposted Journal Voucher is in the Approval Process FOAAINP will show you all pending approvals for a specific transaction. Approvals are not shown in order. Postings should occur in the following order: . Department level queues – queue starting with something other than “Z”. o Level 10, o Level 20 (depending on department approval queue requirement) . Core Office queues – queue starting with “Z” o Level 10 o Level 20 (depending on core office approval requirements) Manual Journal Vouchers The distinguishing characteristics of a manual Journal Voucher are: . document type begins with “J” followed by numbers . Initiating user will be a person’s user ID . Rule class code will be JE2 when entry is initiated in the department.  Core offices have rule class codes specific to their offices.  Commonly used rule class codes are contained in the appendix. Use Screens: FGAJVCD, FGAJVCM, FGAJVCQ, FGIDOCR, FOIAPPH, FOAAINP Correcting a Manual Journal Voucher Error You will do a manual JV to correct a manual JV error. Feed Journal Documents The distinguishing characteristics of a feed are: . Document type is “JV” with an ID number that starts with two or three letters instead of “J”. . Initiating user will normally be “FINANCEAPPWORX” or “FSMLOADX”.  This indicates a system ID instead of a user ID. . Rule class code will normally be JFD (Journal Department Feed) or JFL (payroll transactions).  Use Screens: FGIDOCR Refer to the Batch Header reference list included in the appendix. Current list is maintained by FSM. Departments are required to keep supporting documentation for all feeds sent to FSM for upload into Banner.  FSM does not have the supporting documentation for feeds. Correcting a Feed entry: You will do a manual JV to correct a feed entry error. P-card invoice The distinguishing characteristics of a P-card invoice are: . document type is INV . document ID number will start with “S” . Rule class code will be IPNI . No PO or requisition will be associated with the invoice . No check will be issued for payment; this is settled electronically The P-card holder will have the documentation for these expenditures with their Monthly PCard Log.  If necessary, Purchasing can also provide backup documentation on PCard charges. The P-card holder should have allocated the charges to the correct indices and accounts within 10 days of the statement. Use Screens: FWAINVT Correcting a P-card entry: You will do a manual JV to correct a P-card invoice. DPEZ invoice The distinguishing characteristics of a DPEZ are: .  document type is INV .  document ID number will start with “I” .  Rule class is DP1 .  No PO or Requisition will be associated with the INV number in FOIDOCH Use Screens: FZADPEZ, FZIDPEZ, FGIDOCR, FOIAPPH, FOAAINP, FAIVNDH, FAIINVE Correcting a DPEZ invoice You will do a manual JV to correct a DPEZ invoice that has posted incorrectly. Regular Invoice The distinguishing characteristics of a regular invoice are: .  document type is INV .  document ID number will start with “I” .  Rule class code is INEI .  a PO or Requisition number will be associated with the INV number in FOIDOCH .  a check will be issued for payment in FOIDOCH o  If check number begins with a “!” – payment made by Electronic Funds Transfer Use Screens: FGIDOCR, FOIAPPH, FOAAINP, FAIVNDH, FGAENCB, FGIENCD, FGIOENC, FPIREQN Correcting a regular invoice: You will do a manual JV to correct a regular invoice that has posted incorrectly. Encumbrances The distinguishing characteristics of an encumbrance are: .  document type is PO or REQ .  document ID number will start with “P” or “R” .  the amount will be shown in the “encumbrances/reservations” column Use Screens: FGIDOCR, FOIAPPH, FOAAINP, FAIVNDH, FGAENCB, FGIENCD, FGIOENC, FPIREQN Correcting an encumbrance: You will revise the encumbrance to correct an incorrectly posting encumbrance. Using Other Expense Reports and Screens FGIDOCR Access posted document, such as journal vouchers, purchase requisitions, etc.  Provides activity date and indexes affection. FGIDOCR is the screen used to access posted JVs and other posted documents.  If a JV is very large, you can use “enter query” to search for activity for your specific index. Enter document number, next block, enter query, enter index number (or amount, or journal type, etc.), execute query. From FGIDOCR, access the document text using the Options menu document text or through form FOATEXT. This is especially helpful in explaining the reasoning behind recording the JV. This is a required field for all manual JVs. Feed journal documents do not have document text entered. FOIAPPH FOIAPPH shows the approval history of the document. Department queues start with “A”, “B”, or “C”. Core accounting office queues, such as Main Campus Unrestricted Accounting, HSC Unrestricted Accounting, Budget Offices, Main Campus Contract and Grants, and HSC Contracts and Grants start with “Z”. FOATEXT FOATEXT provides access to document text screen for JVs, invoices, requisitions, purchase orders and encumbrances.  Provides information related to UNM business purpose such as who/what/where/when/why a document is necessary document. FOAAINP FOAAINP identified the pending approval for a JV, invoice, requisition, PO, encumbrance to post into Banner Finance. FAIINVE FAIINVE allow you to find detail on a DPEZ , PCard or regular invoice. FOIDOCH Information on invoices (all types), requisitions, POs, and encumbrances.  Information available includes payment information and check number association with payment transaction.  If the check number begins with an “!”, the payment was made via electronic funds transfer. FGIBDST Budget & actual summary activity by account code – based on Fiscal Year activity-used for unrestricted indexes. FGITRND Detail Transaction Account Code Activity – based on Fiscal Year Activity-used for unrestricted indices FRIGITD Grant Inception to Date summary activity by account code – based on Inception to Date activity-used for restricted contracts and grants FRIGTRD Detail Transaction Account Code Activity – based on Inception to Date Activity-used for restricted contracts and grants FOROLDS Operating Ledger Detail & Summary (Similar to Income Statement) FGRGLDS General Ledger Detail & Summary (Similar to Balance Sheet) FRRGLDS Grant Ledger Detail & Summary (Grant Balance Sheet) Resolving Other Expense Discrepancies Use the above screens and reports to find out what was posted to your account, who posted it, and why it was posted. Once you know this information you can determine who should correct the error, if it is in fact an error. If you are correcting a discrepancy created by someone other than yourself, notify the person who created the discrepancy. This communication greatly reduces duplication of corrections; one by you and one by someone else at the same time.     Advanced Index Reconciliation-Payroll, Revenue and Allocations Part Three of Three Terry Shoebotham Business Management Specialist 6/10 & 11/2014 Table of Contents INDEX RECONCILIATION OVERVIEW............................................................................................................ 1 INDEX RECONCILIATION PROCESS ...............................................................................................................................1 INDEX RECONCILIATION PROCESS FLOWCHART ...........................................................................................................2 FINDING AND RESOLVING PAYROLL DISCREPANCIES........................................................................... 4 PAYROLL TOOLS..........................................................................................................................................................4 USING PAYROLL REPORTS ...........................................................................................................................................6 Accessing MyReports Reports...............................................................................................................................6 FNRSLBE..............................................................................................................................................................8 FNRLDST – Labor Distribution Report..............................................................................................................10 HR APEX Reports – Salaries and Labor Distribution ........................................................................................12 Accessing ePrint reports:....................................................................................................................................17 PZRORGH-Finding Financial Manager of an Organization .............................................................................18 PAYROLL DISCREPANCIES..........................................................................................................................................19 Employee’s Salary Missing-Not Charged to Index .............................................................................................19 Wrong Employee Charged To Index...................................................................................................................19 Wrong Distribution Percentage Charged to Index .............................................................................................19 Wrong Dollar Amount Charged to Index............................................................................................................19 CORRECTING DISCREPANCIES ...................................................................................................................................20 PHAREDS...........................................................................................................................................................20 LoboWeb Employee Life Tab Labor Redistribution............................................................................................20 Status of Labor Redistributions...........................................................................................................................20 INCOME AND ALLOCATION RECONCILEMENT........................................................................................ 21 INCOME ....................................................................................................................................................................21 General Income Information...............................................................................................................................21 Types of Income ..................................................................................................................................................21 ALLOCATIONS ...........................................................................................................................................................22 General Allocation Information..........................................................................................................................22 Types of Allocations............................................................................................................................................23 ADDITIONAL TIPS ........................................................................................................................................... 23 CONTRACT AND GRANT CONSIDERATIONS ..................................................................................................................23 KEEP A RUNNING SPREADSHEET................................................................................................................................25 FINDING WHO THE AUTHORIZED SIGNOR IS ON AN INDEX...........................................................................................25 PREVENTING FUTURE DISCREPANCIES ................................................................................................... 26 EPAF VERSUS EPAN.................................................................................................................................................26 CREATE EPAFS WHEN NECESSARY............................................................................................................................27 HIRING ORGANIZATION SELECTION............................................................................................................................30 Index Reconciliation overview Index Reconciliation Process There are three Index Reconciliation documents; this is the third. The first document, Index Reconcilement Fundamentals-part one of three, goes over the basics of index reconciliation, particularly reconciling non-payroll expenses. The second document, Intermediate Index Reconciliation-part two of three, goes into more depth, explaining UNM document types, related codes, accounting structure including fund and organization levels. Some basic payroll information and reports are mentioned. Some basic definitions are repeated in the Appendix section of all three documents. The following chart shows the basic process for index reconciliation. This third document, Advanced Index Reconciliation, Payroll, Revenue and Allocations-part three of three, goes into more depth with the reconcilement of payroll expenses and how to use the MyReports payroll reports to accomplish the reconciliation. It includes tips specifically designed for the payroll portion of index reconciliation. This document also addresses the reconciliation of income and allocations.  All of these three documents may be accessed and printed at: http://hsc.unm.edu/financialservices/accounting/LEARN.shtml, under “Index Reconciliation”. 1 Index Reconciliation Process Flowchart The information circled is the emphasis of this Manual. Determine what indices you are reconciling. Payroll Reports for each index. Compare People and their percentage of Salary & $ amts with your departmental staff list/percent of salary. Add to Index Reconciliation Summary A Check off Done 2 A Account Reconciliation Report Help may be obtained from your supervisor or the Financial Services Resources web site at (http://www.unm.edu/~fssc/index.html). 3 Finding and Resolving Payroll Discrepancies Payroll Tools When researching a discrepancy between what you expected to see in Banner and what is actually posted in a Banner payroll account, you will use these Banner tools: Type  Name/ Phone  Allows viewing of:  Banner Form  PHAREDS  Individual Employee Payroll charges by job & index. This form is used to redistribute posted Payroll charges. It does not affect future distributions. This form can also be used to view changes that have been made to an employee’s labor distribution.  UNM Portal  Self Service  Log into MyUNM. From the Finance Tab, select  (My UNM)  LoboWeb for Finance. You can run Operating Ledger Queries; from the Query Results you can drill down on any of the account codes, including payroll account codes. This will provide the Document List; you can then drill down on any of the documents to determine the employees that make up the expense.  LoboWeb  EPAF  Electronic Personnel Action Form  interface,  Employee tab,  This form is used to change future labor distributions.  Lobo Web,  Processing EPAFs in a timely manner will reduce the  EPAF, New  need for PHAREDS. It does not affect posted  EPAF  distributions.  MyReports  FNRSLBE  Salary Labor Benefits and Encumbrance Report Provides labor that has posted as well as redistributions (PHAREDS) that have been processed. This report can be run by index, organization code or employee, summary or detail.  4 MyReports  FNRLDST  Labor Distribution Report Lists Active Labor Distributions. This report can be run by employee, index, fund, organization code, or grant.  ePrint  PZRORGH  Contact personnel for each hiring organization. Available from the hrp_banp-HR/Payroll Reports Production (banp) Repository of ePrint, this report lists the HR Consultant and the Financial Manager for each Hiring Org Code.  Financial Services Management  377-4550  Assist with all Finance related questions. If they are not able to help, they will forward your request to a Financial Services Division expert.  HR/Payroll Support  277-4777 (HRPR)  Assist with BAR requests specific to HR Security, UNM Jobs navigation, timekeeping navigation, EPAF navigation, finding HR ePrint reports.  HR APEX Reports  Call HR 277­5803  These are payroll reports you can run yourself and sort, format, and download. Will show labor distribution and salary amounts. Training required to get access.  5 Using Payroll Reports To reconcile payroll posted to an index, you must know: 1) The people that should be posted on the index. 2) The percentage of their pay that should be posted on the index. 3) The dollar amount of their pay. This information is internal to the department, and should be available from your supervisor. Once you know this information, Payroll Report FNRSLBE will show you, by index, the people with salary posting to the index, and the dollar amount posted. It will not show you the percent of their salary that is posting. To find the percent of salary for each employee that is posting to the index, you can run either the MyReports Active Labor Distribution report (FNRLDST) or the APEX HR Payroll report, filtered for Labor percent.  How to run these three reports will be shown below. Accessing MyReports Reports To Access MyReports Reports, Log into MyUNM Go to the Employee Life tab Select 6 Sign in to MyReports: The following screen will appear: Select the F All Campus Reports folder 7 A list of reports available to you will appear. We will look at FNRSLBE-Salary Labor Benefits and Encumbrance Report, and FNRLDST-Labor Distribution Report. FNRSLBE First, select FNRSLBE – Salary Labor Benefits and Encumbrance Report to see historical payroll information. We are selecting to run this report by index. Enter the index, or part of the index and a wild card (* or %). Select the index desired.  Select the month (or months) and fiscal year. Run the report by selecting the chevron pointing right. Remember to select your display output type. 8 Report grouping options include: . By index . By index – no grouping . Org – by index . Org – by employee . Employee Name . Summary by index . Fringe rate by org . Banner ID Experiment with the different groupings to see which gives you the information you need in the best format. This is one person from the above report, run YTD and by index: 9 Note that the month order showing labor is a bit unusual.  Be sure you look at the correct line(s). An example of how a PHAREDS labor redistribution posting appears in the FNRSLBE payroll report: FNRLDST – Labor Distribution Report This report will tell you the distribution for any index or employee. To run the report, sign in to MyReports, select F All Campus Reports. Then select the FNRLDST report. The following screen will appear. Notice that you can run the report by Employee, Organization, Index, Fund, or Grant. 10 Here the report is run by employee: 11 A wildcard (* or %) was typed in the Employee Name field, then the employee’s last name. All employees with that last name, and their ID numbers was returned. The correct employee was then selected. The report shows that this employee is a full time employee, with a distribution of 32% to index 258000 and a distribution of 68% to 485000. The payroll distribution percentage is applied to the bi-weekly or monthly salary expense to determine what amount is posted to the index. The distribution percentage should match your internal list of the distribution of each employee’s salary to this index. In this example, this employee will have 32% of their pay distributed to index 258000.  HR APEX Reports – Salaries and Labor Distribution To access the HR APEX reports, you must first take the required training in Learning Central, and submit a BAR for the role you need.  Contact HR if you have questions at 277-5803. Once you have access, select HR Reports from MyUNM. Log into HR Reports: Select Employee Application. You may now select the criteria you need for your report.  We want to see the labor distribution for employees in one org; 258A. So we will first select by Level 3 Org, AFA VP HSC Administration by clicking on the entry and the single arrow moving the entry to the right. Then select The appropriate org, in this case, 258A. 13 And run the report. The report that is returned contains more information than needed.  Use the Actions button to select “Select Columns”. Select only those columns required.  Name, ID, Position, Position Title, and Appt % were selected. Move the selections from the left column to the right as before, with the single arrow.  The report will be displayed when you Apply the changes. 14 The following report was returned: 15 You realize you do not want Retired Employees.  To remove them, Select the Actions button, and Filter.  Filtering by Position Title, select the “does not equal” Operator from the drop down menu, and the Expression “Retired Employee”, and Apply. 16 Now the report shows you the 10 Employees in this area, and the percent of annual salary they are currently earning in this area, as well as the total number of active employees: 10. This can be helpful information when you are reconciling your indices.  You can also leave in the Salary amount, and compute a monthly amount column.  See the training required to get report access for more detailed instructions. Accessing ePrint reports: To access the following ePrint reports, log in, and go to repository indicated below. 17 PZRORGH-Finding Financial Manager of an Organization The PZRORGH report is available in ePrint, from the hrp_banp-HR/Payroll Reports Production (banp) Repository. To select this report follow the directions in the Accessing ePrint Reports section above. Below is the first page of this report. This report will give you the name of the Financial Manager and Consultant at the hiring organization.  This information is useful if you need to know who to contact about a salary issue affecting your index when the hiring organization of the employee is another department. You can look up an employee’s organization code from the online UNM directory, and determine who to contact from this report. 18 Payroll Discrepancies A discrepancy is any of the following: Employee’s Salary Missing-Not Charged to Index This can happen for several reasons.  Some of the most common are: 1)  No one has done a labor distribution (ePAN) change for the employee, who is new to your department. The charges are still being distributed to the employee’s old department. 2)  Keying error.  During the payroll process, an incorrect index was keyed. 3)  Note that you must have security to access these reports. The employee’s payroll detail will not appear if you do not have security to run the reports. Wrong Employee Charged To Index Possible reasons for an employee being incorrectly charged to an index include: 1)  No one has done a labor distribution (ePAN) change for the employee, who is no longer employed by your department. The charges are still being distributed to the employee’s old department – yours. 2)  Keying error.  During the payroll process, an incorrect index was keyed-yours. Wrong Distribution Percentage Charged to Index 1) No one has done a labor distribution (EPAF) change for the employee, who had a labor distribution change. The charges are still being distributed as per the old, now incorrect, distribution. Wrong Dollar Amount Charged to Index 1) Faculty salary change. The faculty member’s salary may have changed. The amount may be correct, but different than what you had expected. Confirm with your supervisor. 2)  Work Study student is being charged at the full pay rate instead of the work study rate. Work study funds may be depleted, or the amount is too high. Notify the student employment office. 3)  Special compensation has been given to the employee. The amount may be correct, but not what was expected. 19 Correcting Discrepancies If you find a discrepancy, you must determine who has the authority to correct it in PHAREDS. The hiring organization of the employee has this authority. If the employee belongs to another hiring organization you will need to contact that hiring organization and ask them to process the adjustment.  If necessary, use the ePrint report PZRORGH to find a contact person. If the employee is in your hiring organization, your department is responsible for processing the redistribution. When the redistribution is showing on the FOROLDS report, it has been approved and posted. If it has been disapproved, financial services will send the originator an email notifying them that is has been disapproved, and explaining why. The transaction will again have a status “pending” in the Banner form PHAREDS.  If the transaction has posted, you will see a balance change on Banner form FRIGITD or FGIBDST, but these forms do not supply information by employee. PHAREDS To process a redistribution, use Banner form PHAREDS. Each hiring organization should have someone with security to process redistributions through the PHAREDS Banner form.  For details on the PHAREDS process, you may take the FILR 100 Labor Redistribution class. You may register for the class through EOD. The participant guide for the class is available on the FSSC website at http://www.unm.edu/~fssc/docs/FILR-100.pdf. To obtain security for the PHAREDS process, you must take the FILR 100 Labor Redistribution class. LoboWeb Employee Life Tab Labor Redistribution Now you can create Labor Redistributions in LoboWeb by selecting Effort Certifications and Labor Redistributions. This process is also explained in the FILR 100 Labor Redistribution class, and the Labor Redistribution Participation Guide at http://www.unm.edu/~fssc/docs/FILR­ 100.pdf. Status of Labor Redistributions Once a labor redistribution has been completed, it will go to through the approval queues to be approved.  Once it is completely approved, it will be posted in Banner.  No redistributions will post until you have changed the status to Complete (see PHAREDS Labor Redistribution Participant Guide). If a redistribution is denied, the status will be changed back to Pending. The accountant who disapproved the PHAREDS will also send an email indicating that they disapproved it, and why. 20   Income And Allocation Reconcilement Income General Income Information The income received in your income accounts, and how departments distribute income, varies tremendously by department. You should learn what types of income to expect, what accounts to expect them in, and when to expect them.  You should investigate income that is in unusual accounts for your index or for significantly different amounts than expected(generally, the expected amount is the budgeted amount). Account 07ZZ-Reimbursement Holding is in the Sales and Services section of the income accounts. This account is used for temporary holding of payments received by employees for reimbursement for personal usage. This account should be zero at the end of each month. If an employee repays the University for personal travel expenses that were on a PCard, such as an airline seat upgrade, the check is deposited into 07ZZ-Reimbursement Holding. The amount is then moved with a Journal Voucher to the expense account it is offsetting. In the case of a travel reimbursement, it would be moved to the index and account that hold the PCard expense the check was reimbursing. The Journal Voucher would Debit the revenue account holding the reimbursement (07ZZ) and Credit the expense account that holds the expense the employee is reimbursing. Types of Income The following table contains the types of income most commonly seen in general department indices.  It does not contain all revenue accounts. Revenue Type  Accounts  Description  Tuition Revenue  0120-01Z1  Revenue from tuition  Student Fees  0210-02Z1  Revenue resulting from fees charged to students  Patient Services  0330-03Z0  Revenue from Patients, and offsetting amounts for allowances  Grants/Contracts  0410-04Z0  Revenue derived from a Contract or Grant  21 Sales/Services  0410-07ZZ  This eclectic group of accounts includes many types of income, including Internal Service Center income, and the Reimbursement Holding account 07ZZ  Other Operating Revenue  0810-08Z1  This area includes gains recognized at the close of a contract  Appropriations  0710-07D0  Federal & State appropriation revenue, including GFS and Cigarette Tax appropriations  Gifts and Other  1000-1020  If you are not part of the Foundation, question any revenue in these accounts! You probably should not have ANY.  And several other types  That you should not have in a typical index  Allocations General Allocation Information Allocation income is income that has been transferred to your index by another index. There are many rules concerning allocations. Here, we are primarily concerned with whether or not any allocations your index gave or received were budgeted. The following table will help you understand how UNM defines different allocations. An allocation moves actual (not budget) revenue that does not cross Banner Programs except within P10 through P14 (Instruction and General programs). Allocations will generally be made by the administrative office of schools, colleges, or very large departments and will not require budget office approval. If a department wants to move budget as well as actual, a budget entry may be made. 22 Types of Allocations Allocation Type  Accounts  Description  Allocations  1600-1668  Movement of revenue within the University for use by another index than where it was originally posted  When you review allocations, you should see a budgeted amount in the index that contains the allocation. While various indices will receive (or give) their allocations at various times during the year, they should be budgeted, and any allocations exceeding the budgeted amount should be reviewed and questions asked.  Unexpected (unbudgeted) allocations should also be investigated. Additional Tips Contract and Grant Considerations Do not move salary to a contract or grant fund that is past its budget end date or terminated. Be sure the pay period you are moving is within the budget period of the fund. Do not create PHAREDS on indices where the fund is termed without contacting your fiscal monitor first. When a restricted fund is terminated, even though the distribution is indicating that the pay period is being posted to that restricted index, the charge will not be posted to the index. Instead, it will be posted to the unrestricted over expenditure index for that fund. The only way to fix this is to bring it to the attention of the Fiscal Monitor in Financial Services. Your Fiscal Monitor can open the fund and prevent the PHAREDS from posting the charges to the over expenditure index. 23 To determine the budget period on a restricted fund, look on form FRMFUND. No pay periods after May 31, 2004 can be posted to this fund. The budget period ended May 31, 2004. However, is the fund termed? To determine this, go to FTMFUND, below. (The termination Date field on this FRMFUND screen will always be blank.) This fund was terminated March 21, 2007. No payroll distributions or charges of any kind can be made to this restricted index unless the termination date is changed to a date in the future. 24 Keep a Running Spreadsheet Some departments find it helpful to keep a document that shows the allocation split between indices for all of your employees.  You can track salaries by index for each account. Finding Who the Authorized Signor is on an Index You can find out who is authorized to allow expenses on an index.  You will need to know this if you are doing a PHAREDS. To find a signature authorization form for an index, go to FTMACCI for unrestricted indices, or FRAGRNT for restricted indices.  In FTMACCI select query (F7), enter the index, and run the query (F8). Select the Xtender icon. Either the signature authorization will be displayed, or a list of documents attached to that index will be displayed. If the list is displayed, select the document with document type “Signature”.  If there is more than one document with document type “signature”, select the most current by looking at the date on the form. For older restricted indices, go to FRAGRNT. Enter the grant number and select Next Block. Select the Xtender icon. Either the signature authorization will be displayed, or a list of documents attached to that index will be displayed. If the list is displayed, select the document with document type “Signature”. If there is more than one document with document type “signature”, select the most current by looking at the date on the form.   25 Only the people listed on the current signature authorization form are allowed to authorize the movement of expense to that index. The business purpose should reference under whose authority the modifications are being made. Preventing Future Discrepancies EPAF versus ePAN While they may sound the same, and both have to do with labor distributions, EPAFs and ePANs are two different things. An EPAF is the form used when an existing employee is changing labor distribution within an organization. Human Resources does not approve EPAFs. An ePAN is used if the employee is new, if they are changing departments, or they are promoted. Human Resources signs off on ePANs before they go into effect. The ePan can be found on the Human Resources site at http://hr.unm.edu/forms/allforms.php . Select “Forms”, and then select “Employment Forms”.  You can see this screen, which allows you to access the ePAN, in the following screen print. When you select the icon to the far right next to ePAN, the following form will appear. 26 This form is filled out when an ePAN is needed. Create EPAFs When Necessary If you have found an error in a payroll distribution and corrected it with a PHAREDS, you may need to create an EPAF or ePAN to prevent the same error from occurring again. You must have EPAF origination security to access EPAF. If an employee’s distribution is not correctly stated on the correct index on the FOROLDS report, you will need to process an EPAF to change the distribution of future payroll expense. While this will correct the issue going forward, you must use PHAREDS to correct existing errors. EPAFs are created by going into LoboWeb from the Employee Life tab in MyUNM portal. EPAFs are used to permanently change an employee’s labor distribution for future payrolls. You must have the Banner Access Role EPAF Labor Distribution Change Originator to access these screens. 27 28 You must have EPAF Origination security to see the (circled) EPAF link, below. Select Electronic Personnel Action Form, and New EPAF.  The following screen appears.  Complete this so future changes will occur and PHAREDS will not continue to need to be completed each pay period. 29 Hiring Organization Selection When hiring new employees, be consistent with the hiring organization used. If a different level of hiring organization within your department is used, you may not see all employees when running reports for a hiring organization, or you may lose the ability to modify past or future labor distributions. Unless otherwise instructed, always use the same hiring organization as is used for the other employees in the index to which your new employee will be expensed. 30     Index Reconciliation Appendices Appendices Terry Shoebotham Business Management Specialist 6/10 & 11/2014 Table of Contents INDEX RECONCILEMENT APPENDICES............................................................................................ 1 SAMPLE OF COMPLETED INDEX RECONCILIATION SUMMARY .................................................................... 2 FORM -RECONCILIATION SUMMARY.......................................................................................................... 3 FLOW CHART -INDEX RECONCILIATION PROCESS ..................................................................................... 4 LIST OF RECONCILIATION REPORTS............................................................................................................ 6 DEFINITIONS............................................................................................................................................... 7 FREQUENTLY USED BANNER SCREENS....................................................................................................... 9 DOCUMENT RULE CLASS CODE DESCRIPTIONS .........................................................................................11 BATCH HEADER REFERENCE .....................................................................................................................12 COPY JOURNAL FEATURE ..........................................................................................................................13 FY14 PAYROLL CALENDAR.......................................................................................................................14 INDEX RECONCILEMENT APPENDICES Sample of Completed Index Reconciliation Summary -~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~­Index Reconciliation Summary Index Number: 123456 Month Reconciled: 4/2008 Person Completing Reconciliation: Your Name I have reviewed this reconciliation and believe it to be correct: Dept Administrator Reconciling Items: Account  Amount  Notes  3100  87.32  No document.  Expense determined to belong to index 124356.  JV 100632 moved it there on 5/21/08.  3140  .03  Immaterial.  Ignored.  3189  2940.00  DPI D12345 was created on 3/14/08.  Expense not posted. The DPI was never received by accounting.  Copy of DPI hand delivered 5/16/08.  Posted to Banner on 5/20/08.                      Form -Reconciliation Summary Index Number: Month Reconciled: Person Completing Reconciliation: I have reviewed this reconciliation and believe it to be correct: Dept Administrator Reconciling Items: Account  Amount  Notes                                Flow Chart -Index Reconciliation Process Determine what indices you are reconciling. Payroll Reports for each index. Compare each item on your Banner Expense Report with documents of origination. Compare People and their percentage of Salary with your departmental staff list/percent of salary. A Reason for Discrepancy found? Get Help Note Discrepancy and resolution on Account Reconciliation Report Done Note Discrepancy and resolution on Account Reconciliation Report Done List of Reconciliation Reports Number  Name  Use  Location  FOROLDS  Operating Ledger Detail Report  Gives transaction detail based on FOPA element(s) requested  MyReports.  Finance tab, F All Campus Reports/ FOROLDS  FNRSLBE  Salary Labor Benefits & Encumbrance Report  Provides information on posted payroll detail and encumbered funds  MyReports.  Finance tab, F All Campus Reports/ FNRSLBE  FNRLDST  Labor Distribution Report  Provides details on future payroll index distribution  MyReports.  Finance tab, F All Campus Reports/FNRLDST  Additional Reports that may be used:  FRRGLDS  Contract and Grant Ledger Detail Report  Used for Restricted index inception to date reporting  MyReports.  Finance tab, F All Campus Reports/FRRGLDS  FOROLDS  Operating Ledger Summary Report  Summary report of activity – option selection with FOH0001  MyReports.  Finance tab, F All Campus Reports/FOROLDS  PZRORGH  Hiring Organizations  Shows responsible parties by hiring organization  hrp_banp-Hr/Payroll Reports -Production (banp) Repository of ePrint.  Definitions Account – An account is the four digit number that represents the place revenue or expense is recorded in Banner. For example, 3100 is the account code for Office Supplies Expense. You can find a list of UNM accounts, and their definitions, at http://ua.unm.edu/resources/oplegacctdef-12-06-13.pdf Source documents – These are original documents, or copies of original documents.  They are the documents that validate that an expense occurred. They may be UNM Bookstore receipts for merchandise purchased. They may be Internal Invoices from UNM Service Centers. They may be copies of DPIs or copies of invoices from outside vendors. They may have explanatory e-mails or other documents like seminar registration forms attached to them. Other source documents include P-card receipts/reports, internal UNM Purchase requisitions, Purchase requisitions, Blanket Purchase requisitions, and Non-Standard Payment forms.  This list is not inclusive. Index – An Index is the six digit number that accumulates revenue and expenses, in accounts, for a given project. The index may be unrestricted; such as one for Instruction & General funding. The index may be restricted and associated with a grant. All expenses for a given index should be reconciled each month. Post -An item is posted in Banner when it has been recorded in the accounting data base.  Only posted items appear on Banner accounting reports Internal Files – Internal Files are the files you set up to make your job easier. For Account Reconciliation, these will work: Uncleared Folders – For each index create an Uncleared manila folder. This folder place copies of source documents for each expense for that index as these expenses occur. Attach these source documents to the reconciliation and move them to the Account Reconciliation Folder at month end.  Payroll Folders – For each index create a Payroll manila folder. Place copies of all payroll reports and other documentation in this folder each month. Attach these to the reconciliation and move them to the Account Reconciliation Folder at month end. Index Reconciliation Folders – For each index create a manila Index Reconciliation Folder. In this folder place your completed index reconciliation package each month.  This consists of: . The completed Index Reconciliation Summary [see appendix] . The Banner Detail Report [FOROLDS detail report]. You have checked off the amounts on this report and the amounts on your source documents as you reconciled the index. .  The payroll report/documentation. You checked off the detail on the payroll report, and made sure the detail matches the internal detail from your department documentation concerning who is to be charged, and what percentage of their salary is to be charged to this index. .  The source documents and any related schedules created in your department for expenses. You have checked off the detail on these and on your Detail Banner Report. These are stapled together each month to form a monthly reconciliation package for each index.  This is your completed index reconciliation package.  This is filed in your Index Reconciliation Folder each month. Put the group of folders for each index in a green hanging folder, labeled for that index.  Now you have all your information for each index easily accessible. PI-Principal Investigator -This is the primary person in charge of a grant. He or she may have multiple grants. Each grant has at least one index and may have more than one. Frequently Used Banner Screens Banner  Form  Form Title  Form Use  FGAJVCD  JV Entry Form  Create Journal Document  FGAJVCM  JV Mass Entry Form  Create Multiple Line Journal Document  FGAJVCQ  JV Quick  Entry Form  Create Journal Document  FGIBAVL  Budget Availability Status Form  Look up the balance of a fund/org balance -NSF Reject Status  FGIBDSR  Executive Summary Form  Look up fiscal year to date index activity (budget/actual/encumbered amounts)  FGIBDST  Organization Budget Status Form  Look up fiscal year to date index activity (budget/actual/encumbered amounts)  FGIDOCR  Document Retrieval Inquiry Form  List of documents that have been posted, used for JV's, Inv, Pos, etc.  FGIJSUM  JV Summary Form  List of JV's that have not yet posted (approved) in Banner  FGITBAL  General Ledger Trial Balance Form  General Ledger (balance sheet) Balance run by Fund and Account  FGITRND  Detail Transaction Activity Form  Use this form to view transaction level activity on items that hit an account code in an index ­Includes document numbers and short description  FOAAINP  Document Approval Form  Ability to review and approve documents  FOADOCU  Document By User Form  Status, Doc Type, Doc Code, Description, Activity Date, Documents Amount, Deny your own documents  FOAUAPP  User Approval Form  Individual Approval Queue list of documents to be reviewed  FOIAPHT  Approval History form  History of your document approval or denial ­Query form  FOIAPPD  Approved Document Query Form  Approved Document Query Form Shows items sitting in the queue awaiting the FORAPPL process -may be helpful when approvals are disabled for reconciliation (every Friday morning and at month end)  FOIAPPH  Document Approval History Form  Shows document # and who approved it when (Similar to FOIAPHT)  FOIDOCH  Document History Form  Approval history query for Banner documents.  FRAGRNT  Grant Maintenance Form  To find the PI for a grant  FRIGITD  Grant Inception to date Form  View inception to date activity for a restricted fund/grant  FTMACCI  Account Index Code Maintenance Form  Query for index or FOPA information  FTMFUND  Fund Code Maintenance Form  The fund financial Manager of a grant  FTMORGN  Organization Code Maintenance Form  Organization Search  FTIFNDH  Fund Hierarchy Form  Query Fund Hierarchy  FTIORGH  Organization Hierarchy Form  Query Organization Structure Hierarchy  FTIPRGH  Program Hierarchy Form  Query Program Hierarchy  FRIAPPL  Application of Payment History Inquire Form  Specific to Grants  PHATIME  Electronic Approval of Time Entry Form  Form used to enter hours for Non-exempt employees and exception time for exempt employees.  Requires Time entry role and training. Form and process owned by HR/PR  PHAREDS  Labor Redistribution Form  Used to redistribute Salary, Salary Redistribution role required.  Form owned by finance but process owned by HR/PR.  TGIACCD  Account Detail Query Form  Query document numbers created in Non-Student AR (NSAR) module that has been feed to Finance for posting  FAIVNDH  Vendor Detail History Form  Query Vendor Invoices by Vendor/Banner Id Number  FZADPEZ  Direct Pay EZ Form  Direct Pay DPEZ Form -Application  FZIDPEZ  Direct Pay EZ Query Form  Direct Pay EZ Query Form  FGAENCB  Encumbrance/Reservation maintenance Form  Anticipated allowable expenditures can be encumbered funds using this form  FGIENCD  Detail Encumbrance Activity Form  View detail of your encumbrances either PO encumbrance or one created by department  FGIOENC  Organizational Encumbrance List Form  Find Purchase Orders by Organization  FPARCVD  Banner Receiving Form  Used to receive goods purchased on PO's triggers AP to pay invoice  FPCRCVP  Receiving Goods PO Item Selection Form  Used indirectly, from FPARCVD  FPIPKSL  Receiver/Packing Slips Validation Form  Packing list numbers as they are associated with receivers  FPIPOHD  Purchase Order Validation Form  Quick snapshot of PO,  includes Vendor, buyer, date, status of completed and approved & amount  FPIREQN  Requisition Inquiry Document Information  Requisition Information  FTIIDEN  Entity Name/ID Search Form  Query for vender id -First letter case sensitive  FWAINVT  Purchase Card Transaction Document Info  Pcard transaction reallocation form  Document Rule Class Code Descriptions Rule Class  Rule Class  Code  Title  Code  Title  BCF  Budget Carry Forward -Encumb Roll  JAD  Journal Allocation Feed  BD01  Permanent Adopted Budget  JE16  General Journal Entry (Inter-Fund)  BD1  Permanent Adopted Budget  JE2  JE16 -Dept General Journal Entry  BD4  BD04-Temporary Budget Adjustment  JEA  GJE -Accounts Payable  BDT  Dept Budget Transfer Journal Entry  JEB  GJE -MC Budget Office  BTB  MC Budget Temporary Budget Adjust  JEC  GJE -Contracts and Grants  BTM  Bud Ofc Temp Budget Adjustment  JEF  GJE -Property Acct  CA1  Accounts Receivable Charge  JEG  GJE -General Accounting  CB1  Accounts Receivable Charge  JEH  GJE -HSC Controller  CB2  AR Charge-APPL-Different Line B  JEI  GJE -BTI  CDP  Payroll Disbursements  JEL  GJE -Payroll  CLR  Banner Clearing Payment  JEM  GJE -HSC Budget Office  CNEI  Cancel Check -Invoice w Encumbranc  JEN  GJE -Controller Office  CNNC  Cancel check -C/M w/o encumbrance  JEP  GJE -Purchasing  CNNI  Cancel Check -Invoice w/o encumb  JER  GJE -Accounts Receivable  CORD  Establish Change Order  JES  GJE -HSC Cont PST  CR2  Cash Receipts -Gen Deposits AR  JET  Dept Transfer Journal Entry  CR3  Cash Receipts -Gen Deposits BTI  JEU  GJE -Foundation  CR5  Cash Receipts -Gen Deposits Harwd  JFD  Journal Entry Feed  DEPR  DEPRECIATION RULE CLASS  JFH  Housestaff Journal Feed  DP1  Direct Pay Invoice DP-EZ  JFL  Journal Labor Feed  E090  Year End Encumbrance Roll  PA1  Accounts Receivable Payment  EC1  E100-Original Encumbrance  PCLQ  Cancel PO -Reinstate Request  EC2  E020 -Encumbrance Adjustment  PCRD  Cancel Purchase Order  EC4  Encum Liq. allow changes -Dept  POBC  Purchase Order Batch Close  ECP  Encum Liq. allow changes Purchasing  POCL  Purchase Order Close FPAEOCD)  GRCC  Grant -Cost Share Charge  POLQ  Purchase Order-Request Liquidation  GRCG  Grant -Cost Share Grant  POPN  Purchase Order Open (FPAEOCD)  GRIC  Grant -Indirect Cost Charge  PORD  Establish Purchase Order  GRIR  Grant -Indirect Cost Recovery  PR1  HRS Payroll Reallocation Jul-Dec 07  GRRV  Grant -Accrued Revenue  PR2  HRS Payroll Reallocation Jan-Jul 07  HEEL  Payroll -Employee Liability  PR3  HRS Payroll Reallocation < Jan 07  HENA  Payroll -Encumbrance Adjustment  RCQP  Cancel Requisition  HENC  Payroll -Salary Encumbrance  REQP  Requisition -Reservation  HERL  Payroll -Employer Liability  RQCL  Requisition close (FPAEOCD)  HGNL  Payroll -Gross Exp. No Liquidation  HGRB  Payroll -Gross Benefit Expense  ICEC  Cancel Credit Memo w/ Encumbrance  ICEI  Cancel Invoice with Encumbrance  ICNC  Cancel Credit Memo w/o Encumbrance  ICNI  Cancel Invoice without Encumbrance  INEC  Credit Memo with Encumbrance  INEI  Invoice with Encumbrance  INNC  Credit Memo without Encumbrance  INNI  Invoice without Encumbrance  IPNC  Zero Payment Credit Memo  IPNI  Zero Payment Invoice  Batch Header Reference   Copy Journal Feature When creating a journal voucher, you can use either the icon in the header or the “copy” selection in the options menu to copy an existing journal voucher. An existing journal voucher refers to a journal voucher that is either in process or has already been posted. Copy a journal from the journal voucher forms using the following process. 1.   Select the Copy Journal option from the options menu or press the Copy icon. 2.   Enter the source journal voucher document number. 3.   Enter a new document number, leave this field blank or enter NEXT to generate a new document number. 4.   Change the transaction date as required (the default value is the current date). 5.   You may reverse the entry. Select the Reverse JV check box to create the new journal with the opposite sign from the Copy From journal. 6.   Optional: Select the Copy Text check box to copy header text from the source journal voucher. 7.   Select OK. The copy function can be used on the following Journal Entry Screens: FGAJVCQ – Quick Entry Form FGAJVCM – Mass Entry Form FGAJVCD – Journal Entry Form (can directly access NSF indicator screen via options menu) FY14 Payroll Calendar      

Financial Interactions - UH, SRMC, UNMMG

Presenter: Laura Putz
Date: 04-24-2014

Presentation - PowerPoint

Financial interactions   University Hospital, Sandoval Regional Medical Center  and  UNM Medical Group Laura Putz, Associate Controller 4/24/14 Intercompany Invoicing  Financial Interactions routinely occur between UNM, University Hospital (UH), Sandoval Regional Medical Center (SRMC) and UNM Medical Group (UNM MG)  These interactions can involve either revenue or expense for Health Sciences Center (HSC) or Main Campus  UH, SRMC, UNMMG, UNM / HSC are related entities and these transactions must be tracked separately in order to comply with financial reporting requirements UNM HSC When HSC Bills UH UNM/HSC departments provide services and support to UH departments regularly.    Salary Agreement Contracts  HSC employee  providing UH with their services  Memorandum of Understanding (MOU)  general support  Other Agreements  space lease or flow through expenditures, such as utilities and insurance  When HSC bills UH An intercompany agreement is reached using:  Contract Director  Supporting Documentation  monthly invoices are prepared and sent to UH for payment  Non Student Accounts Receivable (NSAR) is used to produce and track invoices Salary Agreement Template  Salary Agreement Template  Salary Agreement Procedures UNM Employee  Salary Agreement Contract - HSC bills UH Identifying the Revenue  Revenue is recorded in the department index each time an invoice is generated  Banner form FGITRND supplies a detail listing of account detail  Account code 0340 – University Hospital Revenue is used Identifying the Revenue Identifying the Revenue Identifying the Revenue Travel Reimbursements UNM Hospital When UH bills HSC What they bill:  Salary Agreements  Memorandum of Understanding (MOU)  Interpreter Services  Catering Charges  Facility Charges related to Clinical Trials  X-rays  Blood tests  Lab work Salary Agreement Procedures UH Employee  When UH bills HSC  HSC department issues an internal purchase requisition When UH bills HSC When UH bills HSC Invoice numbers that begin with:  BL  are standard invoices  BM are credit adjustments When UH bills HSC Clinical Trials Billing Clinical Trials Billing  The clinical trial, not the patient is billed  Hospital guarantor number beginning with 9999 is assigned the clinical trial and used  A Referral Billing Questionnaire is completed before services can be provided at UH  The Referral Billing Questionnaire details what services can be provided and billed to the clinical trial Clinical Trials Billing  Timely UH invoice review is critical  Incorrect invoices charges must be reversed from the clinical trial  Many payers (ie: patient’s insurance company) have 90 day windows during which billing must occur  UH bills charges from the prior month.  Frequently  less than 60 days remain once the department is invoiced for UH to invoice another payer Internal Requisition- UH bills HSC Invoice - UH bills HSC General Guidelines Travel Reimbursements UH Catering Reconciliation Assistance  Unrestricted Accounting-HSC can provide reports with UH invoicing data.  Reports can be generated by  Index  Organization Level 5  Contact the HSC AR Coordinator to request reports  Invoice copies can also be obtained from the HSC AR Coordinator SRMC When HSC Bills SRMC  Memorandum of Understanding (MOU)  Salary support  general support  Other Agreements  Medical Malpractice and other insurance  Legal services  Marketing campaigns  Recruiting and Relocation expenses Identifying the Revenue  Revenue is recorded in the department index each time an invoice is generated  Banner form FGITRND supplies a detail listing of account detail  Account code 0360 – SRMC Revenue is used When HSC bills SRMC Other Reimbursed Costs  Requires pre-approval from SRMC  Minimal activity at this time  Expenses recorded in index 331135  SRMC-HSC Reimbursements  HSC AR Coordinator “sweeps” expenses and invoices SRMC NSAR SRMC Invoice Example When SRMC bills HSC What they bill:  Facility Charges related to Clinical Trials and other research projects  X-rays  Blood tests  Lab work  Invoice should be sent to Financial Services for     processing  Very little activity at this time When UNM MG bills HSC  The UNM Medical Group (UNM MG) pays for expenditures within their accounting system on behalf of a HSC department.  UNM MG invoices HSC in order to be reimbursed for these expenditures.  Labor/Benefit Cost  UNM MG Employee working for HSC department When UNM MG bills HSC UNM MG and UNM UNM MG bills HSC Reconciliation Assistance  Unrestricted Accounting-HSC can provide reports with UNM MG invoicing data.  Reports can be generated by  Index  Organization Level 5  Contact the HSC AR Coordinator to request reports  Invoice copies can also be obtained from the HSC AR Coordinator When HSC bills UNM MG  Expenditures recorded in the UNM MG Agency Fund:  Salary and benefits  PCard Charges  UNM Employee travel reimbursement  Memorandum of Understanding (MOU)  Not frequently used Reminders:  Unrestricted Accounting-HSC coordinates all intercompany invoicing  Incoming  Outgoing  Unrestricted Accounting-HSC processes all payments made to UH, SRMC and UNM MG  Unrestricted Accounting-HSC processes all payments received by UH, SRMC and UNM MG  UNM should not reimburse employees of UH, SRMC or UNM MG NSAR Coordinator:  Stacie Hurley  272-5460  shurley@salud.unm.edu What are your Questions?

Using MyReports

Presenter: Laura Putz
Date: 01-14-2014

Presentation - PowerPoint
Handout - PDF

LEARN- MyReports January 14 & 15, 2014 UNM Reporting Changes  MyReports is our new reporting tool  Many Finance Reports are now available  Hyperion Reports are scheduled to sunset March 31st, 2014 Accessing MyReports Accessing MyReports Accessing MyReports List All Campus Reports Include: All Campus Reports Include: All Campus Reports Include: HSC Specific Reports Include: HSC Specific Reports Include: HSC Specific Reports Include: MyReports – Finance Training Opportunities  Learning Central – 7 sessions offered  MyReports Website home tab - select ◦ MyReports Info ◦ Finance ◦ Training Resources   FNRPCRD – PCard Transaction Report  Only available in MyReports  How to save a report for future use  How to export data for analysis  How to use excel pivot tables Accessing the PCard Report How to Save “My PCard Org Report” After Saving “My PCard Org Report” Running PCard by Organization Running the Report  This Report can be run several ways: ◦ PDF ◦ HTML ◦ Excel Raw Excel Data: FNRPCRD by Org Excel Data Filters “Realloc.” and account 3100  Excel Data: Using a Pivot Table Excel Data: Filtering a Pivot Table Running PCard by Originator Running PCard by Originator Raw Excel Data: FNRPCRD by PCard Holder Excel Data: filtered by Travel Accounts Understanding the Structure Tips and Tricks for Analysis  Using UNM Chart of Accounts Hierarchy ◦ Organization Structure ◦ Fund Structure ◦ Program Structure ◦ Account Code Structure   Unrestricted Fund Types Restricted Fund Types Account Level 2 - Revenue: Account Level 2 - Expense: Executive Summary Report Run Management Summary Report Executive Management Report Run FOROLDs for Services Raw Data reconciled Sorted data for Analysis In Summary:  74 days and counting…  Hyperion reports will not be produced after March 31, 2014  MyReports will be the finance reporting vehicle  MyReports allows greater flexibility in data analysis and output options Optional Report Demonstrations

Effort Certification Review (Main Campus)

Presenter: Rosa Gonzalez-Rosenblatt
Date: 08-14-2013

Presentation - PowerPoint

Effort Certification Training Rosa Gonzalez-Rosenblatt 8/14/13 UNM Effort Certification Training Pre-Review Stage What is Effort • Effort is the time spent on a sponsored project, it is expressed as a percentage of the employees’ total University related duties o Effort must equal 100% cumulative total • Includes teaching and research activities • Does not include any activities outside of University related work o Cannot exceed 100% if working on multiple projects o It is not measured on a standard 40 hour work week, but on the actual time worked. • Effort Certification Policy in UNM Faculty Handbook Why do we Certify? • Effort is a mechanism to confirm salaries and wages charged to a sponsored project in relation to the work performed and committed to the agency in proposal. o UNM is required to assure Federal and other award sponsors that the allocation of salaries charged are fair, consistent and timely with the effort performed. • Potential financial penalties for non-compliance • Expenditure disallowance – department would be responsible to repay the charges to the agency • Non-compliance on A-133 audit - could impact future funding • Applies to non-timesheet employees only Effort Certification Process • Certification reports distributed and certified semi-annually through LoboWeb o Pre-Review Stage • 30 calendar days after reports are generated o PI Certification • Begins when Pre-Review stage is completed • Ends 60 calendar days after reports are generated o Email notifications • Initial email to Pre-Reviewer only • PI will receive one email at end of 30 days • Reminder and delinquent notifications will also be sent • Pre-Review must be completed prior to Certification   Accessing Reports • https://my.unm.edu/cp/home/displaylogin  - to log into LoboWeb • Select the Employee tab  - Click on Lobo Web Select Effort Certification Select Review or Certify Reports Click Advanced Search Select Attribute to Begin Search Open Search Drop Down Box – Chart of Accounts Search for Reports to Review • Select Attribute drop down o Chart of Accounts – type “U” Search for Reports to Review Select from Employee List • Highlight record, double click to view effort report actions • Note Status and State of each employee Employee Effort Report • Salary distribution is displayed as percentage; a pie chart also displays the salary distribution • Tolerance +/- 5% original award vs. effort worked Pay Period Summary • Select Pay Period Summary to view effort by pay period o If grant is not active over whole effort certification period, this is where you can view detail by month Pay Period Summary • Select Monthly – Regular link to view FOAPA detail including index Routing Queue Selecting and Adding Proxy Access Navigation Tips • Scroll Bar o Click F11 if you have multiple items listed under sponsored projects and cannot see the scroll bar • Expand the columns o Click on the line you would like to expand and drag the line to make the column larger • Sort columns o Click on the top of the column you would like to sort by, you can sort by any of the columns listed • View routing queue o Select Routing Queue link on the left panel, to view all individuals in the queue and what actions have been or need to be taken o Note: The employee name will appear on routing queue as certifier, the only time they will be required to certify is if they are also the PI • View Effort Breakdown by Pay Period   Column Definitions Status  column: • Under Review – report has been created and is available for viewing • Awaiting Certification – Pre-Reviewer has reviewed and is ready for certification • Completed – effort report has been certified and completed Locked/unlocked column: • Locked – after an effort report is completed it is locked and cannot be modified • Unlocked – effort report is available for change by members of the routing queue • Awaiting Refresh – labor re-distribution has been completed and has updated the payroll record, report needs to be updated, reviewed and certified • Changes Submitted – when request change button is clicked Tips for Reviewing Effort • Effort is reported as an average over the reporting period (may be impacted by the number of months the award is active) • Compare reported effort percentage to proposed effort in original award document • Tolerance threshold of +/- 5% • Variances that may require agency prior approval: o Absences (generally 3 months or more) o Significant reductions of the PI and/or Key Personnel effort (25% or more) o Note: It is the PI’s responsibility to work with the Pre-award office to obtain sponsor’s prior approval   E-Print and Hyperion reports • E Print reports FRROEC01 and FRROEC01-HSC • Located in the fin_banp repository o Provides a report of the effort distribution in dollar values to correspond to the percentages displayed on the effort certification reports o Displays information by Org Code, PI, and Grant • Hyperion report FRRHOZ05-Effort Certification Status • Located in the Finance Reports/Finance Production Reports o List of employees in the effort queue o Status and State of the record o Action to be taken by Org • Hyperion report FRRHOC05 • Located in the Finance Reports/F Dept_School_College/F C&G folder o List of Account Administrators by Org Pre-Review Scenarios • Scenario 1 Pre-Review completed – no change necessary • Scenario 2 Pre-Reviewer needs labor re-distribution completed to update record     Scenario 1 – Complete Pre-Review • No change necessary for this employee • Click Review button to complete Pre-Review stage Scenario 2 – Record needs changes • Pre-reviewer identifies changes needed • Select Request Changes button; system prompts user to send an e-mail.  Send email to department labor re-distribution initiator (if needed), include all necessary information to complete labor re-distribution Clear Changes Requested • If Request Changes button was selected in error • Click Clear Changes to restore report to original  state to continue process Scenario 2 – Labor Re-Distribution has been requested o Status now Under Review-Changes Submitted and the Review button no longer appears. Scenario 2 - Labor Re-distribution completed by Initiator • Labor re-distribution processed by department, has not updated payroll records. Note message in upper right corner Scenario 2 – Update Effort Report • Changes have been applied and Awaiting Refresh, click the Update Report button to show changes on the effort report o Available for Pre-review after update is complete o Status changes to Under Review – Unlocked and the Review action can be taken Scenario 2 - Complete Pre-Review • Select Review button to complete this stage Certification Stage • Select Certify button • Complete certification process o Note: Certification will not be completed until all PI’s  have certified Record is Locked • Once effort has been certified, salary transfers for that period will only be permitted in rare circumstances o If it is necessary to adjust the salary charges for a previously certified effort period, a detailed explanation of the need for the salary adjustment and subsequent re-certification is required o Request to open a previously certified effort report memo must be completed and signed by Dean or Director • Requests  can be scanned or sent to your respective C&GA Manager o Memos will be retained by Contract & Grant Accounting • The Effort Report will need to be reviewed and re-certified  Record is Locked Record is Locked • Banner PHAREDS Potential Consequences* • Ability to submit proposals could be suspended • List of non-compliant PI’s posted on UNM website • Uncertified effort expenses moved to unrestricted index     • * to be determined by Research faculty Contact Information • Contact your Pre-Reviewer for general/procedural  questions • For all other questions o Contact: Contract & Grant Accounting office - Main Campus/Branches          • 277-4721 o Contact: Contract & Grant Accounting  - Health Sciences Center • 272-0163 o Or send Email to: • Effort-Reporting@salud.unm.edu  

Effort Certification Review (HSC)

Presenter: Christine Smith
Date: 08-13-2013

Presentation - PowerPoint

UNM Effort Certification Learn Why do we Certify? • Effort is a mechanism to confirm salaries and wages charged to a sponsored project in relation to the work performed and committed to the agency in proposal. o UNM is required to assure Federal and other award sponsors that the allocation of salaries charged are fair, consistent and timely with the effort performed. • Potential financial penalties for non-compliance • Expenditure disallowance – department would be responsible to repay the charges to the agency • Non-compliance on A-133 audit - could impact future funding • Applies to non-timesheet employees only What is Effort • Effort is the time spent on a sponsored project, it is expressed as a percentage of the employees’ total University related duties o Effort must equal 100% cumulative total • Includes teaching, research, service • Does not include any activities outside of University related work o Cannot exceed 100% if working on multiple projects o It is not measured on a standard 40 hour work week, but on the actual time worked. o Tolerance threshold of +/- 5% • Original award agreement and time worked • Recently approved Effort Certification Policy will be added to UNM Faculty Handbook Tips for Reviewing Effort • Effort is reported as an average over the reporting period (may be impacted by the number of months the award is active) • Compare reported effort percentage to proposed effort in original award document • Variances that may require agency prior approval: o Absences (generally 3 months or more) o Significant reductions of the PI and/or Key Personnel effort (25% or more) o Note: It is the PI’s responsibility to work with the Pre-award office to obtain sponsor’s prior approval   Effort Certification Process • Reports are displayed by employee • Certification reports distributed and certified semi-annually through LoboWeb o Pre-Review Stage • 30 calendar days after reports are generated o PI Certification • Begins when Pre-Review stage is completed • Ends 60 calendar days after reports are generated o Email notification at all stages • Dept. AA copied on initial email for Pre-Review • PI will receive weekly emails after the Pre-Review Stage has ended • Reminder and delinquent (chair cc’d)emailed weekly • Pre-Review must be completed prior to Certification   Column Definitions Status  column: • Under Review – report has been created and is available for viewing • Awaiting Certification – Pre-Reviewer has reviewed and is ready for certification • Completed – effort report has been certified and completed Locked/unlocked column: • Locked – after an effort report is completed it is locked and cannot be modified • Unlocked – effort report is available for change by members of the routing queue • Awaiting Refresh – labor re-distribution has been completed and has updated the payroll record, report needs to be updated, reviewed and certified • Changes Submitted – when request change button is clicked Employee Effort Report • Salary distribution is displayed as percentage; a pie chart graph also displays the salary distribution • Tolerance +/- 5% original award vs. effort worked • E-print reports will show status by Org, PI and activity in dollars E-Print and Hyperion reports • E Print reports FRROEC01 and FRROEC01-HSC • Located in the fin_banp repository o Provides a report of the effort distribution in dollar values to correspond to the percentages displayed on the effort certification reports o Displays information by Org Code, PI, and Grant • Hyperion report FRRHOZ05-Effort Certification Status • Located in the Finance Reports/Finance Production Reports o List of employees in the effort queue o Status and State of the record o Action to be taken by Org • Hyperion report FRRHOC05 • Located in the Finance Reports/F Dept_School_College/F C&G folder o List of Account Administrators by Org Pre-Review Scenarios • Pre-Review completed – no change necessary • Pre-Reviewer needs labor re-distribution completed to update record • Pre-Reviewer completes review, Certifier requests a labor re-distribution to update the record  Note: All Pre-Reviewers must complete review to  move to Certification Stage Scenario 1 – Complete Pre-Review • No change necessary for this employee • Click Review button to complete Pre-Review stage • Email notification will be sent to PI weekly once the Pre- Review  Stage is complete Scenario 2 - Labor Re-distribution started/completed by Initiator • Labor re-distribution processed by department, has not updated payroll records. Note message in upper right corner Scenario 2 – Update Effort Report • Changes have been applied and Awaiting Refresh, These changes are updated nightly.  o Available for Pre-review after update is complete o Status changes to Under Review – Unlocked and the Review action can be taken Scenario 2 - Complete Pre-Review • Select Review button to complete this stage • PI will receive a weekly email notification when the Pre-Review Stage has ended. Scenario 3 - Certifier Requests a Change • If effort needs to be corrected after Pre-Review Stage is complete - select Request Changes to initiate an email to designated department personnel o Email should include all necessary information to complete the labor re-distribution o Existing report will be updated after labor re-distribution is completed • PI will receive a weekly email notification when the Pre-Review Stage has ended. Clear Changes Requested • If Request Changes button was selected in error • Click Clear Changes to restore report to original  state to continue process Certification Stage • Select Certify button • Complete certification process o Note: Certification will not be completed until all PI’s  have certified Record is Locked • Once effort has been certified, salary transfers for that period will only be permitted in rare circumstances o If it is necessary to adjust the salary charges for a previously certified effort period, a detailed explanation of the need for the salary adjustment and subsequent re-certification is required o Request to open a previously certified effort report memo must be completed and signed by Dean or Director • Requests  can be scanned or sent to your respective C&GA Manager o Memos will be retained by Contract & Grant Accounting • The Effort Report will need to be reviewed and re-certified  Selecting and Adding Proxy Access Contact Information • Contact your Pre-Reviewer for general/procedural  questions • For all other questions o Send Email to: Effort-Reporting@salud.unm.edu o Contact: Contract & Grant Accounting  - Health Sciences Center • 272-1335 Peggy Dominguez  

Purchasing Changes

Presenter: Bruce Cherrin
Date: 05-14-2013

Presentation - PowerPoint

Purchasing Changes LEARN - May 14 & 15, 2013 Bruce Cherrin Chief Procurement Officer UNM Procurement Services NEW LAW SUMMARY Four (4) legislative bills affecting Procurement were passed by the New Mexico State Legislature (NMSL) this session and signed by Governor Susana Martinez NEW NMSL LAWS All Effective 6/14/13 • Senate Bill 182 • Senate Bill 266 • Senate Bill 340 • Senate Bill 443 SB 443 – The Good News Formal Bid Limits Increase to $60,000 – Changes Small Purchase Limit – Changes Informal Bid Limit SB 443 – The Good News Goods Below $10,000 or Services Below <$5,000 • Small Purchase Goods $10,000.01 to $20,000 • One Quote or Other Documentation which describes price and product    SB 443 – The Good News Goods $20,000.01 to $60,000 – 3 Quotes • The Buyer may use 1 quote in the following circumstances: • Existing Contract (UNM, GSA, SPD, etc) • Urgency – Buyer’s sole discretion • Buyer’s Experience – Buyer’s determination that 1 quote represents fair value    SB 443 – The Good News Services or Goods and Services Combined 5,000.01 to $60,000 – – Informal Bid – Existing Contract – 3 Quotes (1 /Quote for the following): • Existing Contract • Urgency • Buyer’s Experience      SB 443 – The Good News Bid Limit Increases Impact on UNM Requisitioners: Fewer Purchases will be subject to the Formal Bidding Process or New Formal Sole Source Justification SB 443 – The Good News Bid Limit Increases Effective 6/14/2013 SB 182 – The Bad News New “30-Day Challenge” Law for Sole Source Purchases 30 Day Waiting Period for all Sole Source Purchases, no exceptions SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – Applies only to Sole Sources above Formal Bid Limits – Requires Purchasing to Post a “Notice of Intent to Award” for a Sole Source Procurement 30 days prior to the purchase SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – Your Sole Source Form will be posted in the UNM Sunshine Portal to be viewed and challenged by other vendors SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – If the 30-day waiting period elapses without a challenge, your Sole Source Purchase can then be made SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – If your Sole Source is Challenged, Purchasing will follow PROTEST guidelines as posted at http://www.unm.edu/~purch/reg11.pdf and may be forced to use the Bid Process for your purchase SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Also shifts Purchasing’s Responsibility on a Sole Source from Good Faith Effort to Due Diligence • Purchasing will have to verify the information on your Sole Source form SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: – Substantial Increase in  Sole Source Procurement Processing Time SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: – Requisitioners will need to plan well in advance of a Sole Source Purchase  • No longer a “Fast Track” method of Purchase SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: – Might be faster to go out to Bid • Ex.  Sole Source Challenge on Day 29 SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: Your Sole Source Forms will be subjected to public scrutiny • Purchasing will require more thorough documentation than in the past SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: Your Sole Source Forms will be subjected to public scrutiny • 1-2 sentence Sole Source Justifications will no longer be adequate SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – “Per Terms of Grant” is No Longer sufficient for Sole Source Justification • Must now justify WHY it is required for Grant and why other substitutes are not acceptable SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases – Your Sole Source Justification Form must consider these factors: • What is unique about it • What other vendors sell it • Why it meets your needs and others do not   SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases In order to protect you from Sole Source Challenges, UNM Purchasing is currently updating our Sole Source Form to require a more thorough justification   SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases 30-Day Challenge Law is effective 6/14/13 • Therefore, the last possible day to issue a Sole Source PO using FY13 funds is the day before the law is effective, Thursday, 6/13/13.   SB 182 – The Disturbing News? Willful Violation of the Procurement Code Penalties: – 4th Degree Felony for Purchase > $50,000 – Misdemeanor for Purchase < $50,000     SB 182 – The Disturbing News? Willful Violation of the Procurement Code SB 182 – The Disturbing News? Willful Violation of the Procurement Code What does this mean to me as a Requisitioner?  Should I be worried???   SB 182 – The Disturbing News? Willful Violation of the Procurement Code This law will have NO impact to a Requisitioner provided: • Purchase Order is in place BEFORE receiving goods/service •  Requisitioners act in good faith SB 182 – The Disturbing News? Willful Violation of the Procurement Code – Will mostly pertain to actions of Buyers in Purchasing but could apply to UNM Departments if they act without Purchasing SB 182 – The Disturbing News? Willful Violation of the Procurement Code Department Example of Willful Violation: Department hires a consultant on their own (without Purchasing/PO).  Invoiced prior to PO being issued. – If purchase is over $50,000 – 4th degree felony – If purchase is under $50,000 - Misdemeanor SB 182 – The Disturbing News? Willful Violation of the Procurement Code Other criminal laws that affect Departments continue to be in effect (Fraud, etc): – Illegal Kickbacks – Fraudulently supplying information for Sole Source, Bids, etc SB 182 – The Disturbing News? Willful Violation of the Procurement Code –  Effective 6/14/13 Other Procurement Law Changes SB 182 - Emergency Procurement (rare) – UNM Purchasing must now be directly involved – Emergency Procurement Form must now be posted within 3 business days after award – Forms will be posted in UNM Sunshine Portal – UNM Purchasing is creating a new form   Other Procurement Law Changes SB 340 – Design and Build Projects – Eliminates $10 Million threshold – Should increase use of D&B Other Procurement Law Changes SB 266 – Architectural/Construction – Raises limits for Architectural & Engineering services from $200,000 to $2,000,000 over 4-year period Other Procurement Law Changes SB 443 – Certification/Exemptions – Establishes certification and training requirements for Chief Procurement Officers  

Key Account Codes

Presenter: Terry Shoebotham
Date: 02-19-2013

Presentation - PowerPoint

Key Account Codes February 19th and 20th, 2013 Terry Shoebotham, CPA Business Management Specialist  What we will Cover:  What is an account code  What are the basic types of account codes  Selecting an account code for your documents  Allowable Expenses  F&A Excludable Account Codes  Account Code vs. Index  ACCOUNT CODE  Type of expense  INDEX  Where it is charged  Basic Account Code Types  The highest level is “Operating Expenses Other”, which are for account codes 20xx through 9xxx.  Some of these are used in your documents  Those are the ones we will discuss Operating Ledger Categories  Selecting an Account Code  Computer Account Codes  3140 – Computer  Software General                   Includes software (on disks,  licensed, or downloaded)  required to operate in-house  computers.  All computer  software purchased is expensed  here  3150 – Computer  Supplies <$5,001                      Computer Accessories (printers,  keypads, monitors, mouse)  Computer Account Codes  3180 – Non Capital Equipment <$5,001    Printers, IPADS for HSC Residents  & Fellows  if purchased with “Book  Funds”  3189 – Computers and Servers <$5,001  Computers such as  laptops/desktops/ servers/ faculty  IPADs.  Excludes printers  Plant Account Codes  70C1 –  Equip Warranties/Service Contracts     70D0 – Equip Repairs Maintenance General  9020 –  Computer Hardware >$5,000  What are your Questions so Far?  General account code questions  Specific account code questions “F&A Excludable”?  F & A Excludable Guidelines   Allowable Expenses only Excludable Expenses that are Allowed by policy but:   solely promotional  Receptions for donors, for prospective groups of employees to advertise UNM benefits, for fund raising  Alcohol  Always goes in 31B0  Never goes on an I&G index  Never goes on a Contract or Grant Index  Food Allowable?  F & A excludable, or not? • For a fund raising banquet   Allowable and Excludable • For a Christmas party   Unallowable • For a mandatory meeting of all faculty during lunch   May be allowable.  Not excludable • For break room staff snacks  Unallowable      Food Allowable?  F & A excludable, or not? •  Snacks for faculty sponsored study/review session   May be allowable.  Not excludable • For Retirement cake for retiring staff member   Unallowable • For a reception for  a major donor   May be allowable.  Excludable      Supplies/Services Allowable? F & A excludable, or not? •  Uniform shirts for OMI investigators   Allowable.  Not excludable • T shirts with a UNM logo for department staff   Unallowable • Flowers for UNM Graduation Ceremony   Allowable.  Excludable • Flowers for a staff person who just graduated from UNM   Unallowable      Supplies/Services Allowable? F & A excludable, or not? •  Pens with UNM logo for prospective students   Allowable.  Excludable • Pens with UNM logo for recruiting prospective staff members   Allowable. Excludable • Pens with UNM logo for staff members   Unallowable      We have reviewed:  What an account code is  The basic types of account codes  How to select an account code for your document  Allowable?  First thing to check  F&A excludable account codes  What are your Questions?

C&G Review of Key Concepts (Main Campus)

Presenter: Unknown
Date: 12-05-2012

Presentation - PowerPoint

Contracts and Grants Main Campus Presentation December  5, 2012 Department Overview  Contract & Grant Accounting is the central office responsible for overseeing the financial compliance requirements stipulated within the sponsored award to the University based on a proposal submitted from the PI. Department Overview, cont’d  Interpret UNM, Federal, State, and sponsor policies  Set up award and budget in Banner  Monitor expenditures for compliance  Review EPAFs, Labor Redistributions, Requisitions, JVs, and DPIs  Process petty cash transactions  Create and submit invoices to sponsors (including collections)  Process automated draws (payments)  Apply payments to awards (checks and wires)  Review and process sub-award invoices (incoming invoices)  Generate and track Effort Reports  Review and track carry-over requests submitted by PI  Submit Financial Reports  Submit Invention Statements and Equipment/Inventory Reports  Close awards in Banner and with sponsor  Respond to audit requests Agenda:  Contract & Grant and General Banner Forms  Business Purpose  Cost Transfers  90 day Memos  Salary Transfers Agenda, cont’d:  What NOT to Charge  Retention Policy       Useful Banner Forms Specific to Contracts and Grants Useful Banner Forms General FRAGRNT FRAGRNT FRAGRNT FTMACCI FRMFUND FRIGITD FRIGITD FRIGITD FRIGITD FRIGITD FRIGITD FOADOCU FOAAINP FOIAPPH FOIAPPH FGIDOCR FOIDOCH FOIDOCH FOIDOCH Business Purpose  Always required  Essential on Contract or Grant purchases  Justifies the expense  Documents the expense in layman’s terms Business Purpose A business purpose is required on a DPEZ, JV, Pcard Exception, Requisition, or Labor Redistribution:  NOT ONLY “what I bought (or redistributed)”  But ALSO “Why I bought (or redistributed) it” Who What Where Why Justify Business Purpose – Examples Good example for an Invoice:  “Purchase reactant for Dr. Smith to complete  final experiments on grant so conclusions for grant can be finalized.” Weak / Unacceptable example:   “To spend down the remaining grant funds.”   Business Purpose – Examples Weak / Unacceptable example for a JV:  “Move expense to correct index” Good example:  “Move Joe Smith’s SW air travel (S07564) to attend a seminar on the grant-related topic, how to hydrolize FSQ with greater accuracy, attended 7/12-16/2012 to the grant index”   Cost Transfer Policy Items must be:  Of reasonable cost  Allowable on the award  Allocable to the award  Be transferred when identified ◦ Ideally within 90 days  Note: transfers within the last 90 days of the budget period are highly scrutinized ◦ Can anyone guess why? 90 Day memo  Required if an expense has not been properly allocated to a grant within 90 calendar days from original transaction date  Includes Business Purpose for the transaction  Memo includes an explanation - why did this late entry happen?  This is preventative - explain how this is NOT going to happen again Salary Transfers Must also meet ALL of the Cost Transfer requirements! If later than 90 days, a 90 day memo is still required Additionally:  Total salary must be an accurate reflection of work performed on the project  Business Purpose must indicate name of person who requested the transfer (with signature authority)  Department must maintain supporting documentation in their files  Reminder: payroll records are locked when effort is certified   What NOT to Charge!  Items included in “F&A” are generally not allowed as direct costs on awards  Examples may include: ◦ Administrative and clerical salaries ◦ Copier paper and toner ◦ General office supplies ◦ Telephone line and cell phone charges And Some Exceptions…  OMB Circular A-21 explains in more detail.  In general: ◦ On a “Major Project” direct administrative and/or clerical salaries may be appropriate ◦ These are large, complex programs ◦ Projects that involve extensive data accumulation ◦ Projects that are geographically inaccessible to normal departmental administrative services Know your Retention Policy  Grant retention policies vary; READ YOUR CONTRACT OR GRANT  Payroll does NOT keep copies of timesheets ◦ This is a department responsibility  The years of retention required begin AFTER the final financial report is accepted  If a 3 year grant ends in June of 2014 and has a 7 year retention policy, you must keep original source documents until: Resources  HSC Contract and Grant Accounting Website: http://hsc.unm.edu/financialservices/cga/  Main Campus Contract and Grant Accounting Website: http://www.unm.edu/~cgacctng/  UNM Cost Transfer Policy-2450: http://www.unm.edu/~ubppm/ubppmanual/2450.htm  Cost Transfer Justification Memo template: http://hsc.unm.edu/financialservices/CGA/Forms.shtml  Unrestricted Accounting, Main: http://www.unm.edu/~gacctng/ Any Questions?

C&G Review of Key Concepts (HSC)

Presenter: Unknown
Date: 12-04-2012

Presentation - PowerPoint

Contracts and Grants HSC and Main Campus Presentation December 4 & 5, 2012 Department Overview  Contract & Grant Accounting is the central office responsible for overseeing the financial compliance requirements stipulated within the sponsored award to the University based on a proposal submitted from the PI. Department Overview, cont’d  Interpret UNM, Federal, State, and sponsor policies  Set up award and budget in Banner  Monitor expenditures for compliance  Review EPAFs, Labor Redistributions, Requisitions, JVs, and DPIs  Process petty cash transactions  Create and submit invoices to sponsors (including collections)  Process automated draws (payments)  Apply payments to awards (checks and wires)  Review and process sub-award invoices (incoming invoices)  Generate and track Effort Reports  Review and track Carry-over requests submitted by PI  Submit Financial Reports  Submit Invention Statements and Equipment/Inventory Reports  Close awards in Banner and with sponsor  Respond to audit requests Agenda:  Contract & Grant and General Banner Forms  Business Purpose  Cost Transfers  90 day Memos  Salary Transfers Agenda, cont’d:  What NOT to Charge  Retention Policy  Our Commitment to you  Participant Incentive Memo     Useful Banner Forms Specific to Contracts and Grants Useful Banner Forms General FRAGRNT FRAGRNT FRAGRNT FTMACCI FRMFUND FRIGITD FRIGITD FRIGITD FRIGITD FRIGITD FRIGITD FRAAREV FRIBILL FOADOCU FOAAINP FOIAPPH FOIAPPH FGIDOCR FOIDOCH FOIDOCH FOIDOCH Business Purpose  Always required  Essential on Contract or Grant purchases  Justifies the expense  Documents the expense in layman’s terms Business Purpose A business purpose is required on a DPEZ, JV, Pcard Exception, Requisition, or Labor Redistribution:  NOT ONLY “what I bought (or redistributed)”  But ALSO “Why I bought (or redistributed) it” Who What Where Why Justify Business Purpose – Examples Good example for an Invoice:  “Purchase reactant for Dr. Smith to complete  final experiments on grant so conclusions for grant can be finalized.” Weak / Unacceptable example:   “To spend down the remaining grant funds.”   Business Purpose – Examples Weak / Unacceptable example for a JV:  “Move expense to correct index” Good example:  “Move Joe Smith’s SW air travel (S07564) to attend a seminar on the grant-related topic, how to hydrolize FSQ with greater accuracy, attended 7/12-16/2012 to the grant index”   Cost Transfer Policy Items must be:  Of reasonable cost  Allowable on the award  Allocable to the award  Be transferred when identified ◦ Ideally within 90 days  Note: transfers within the last 90 days of the budget period are highly scrutinized ◦ Can anyone guess why? 90 Day memo  Required if an expense has not been properly allocated to a grant within 90 calendar days from original transaction date  Includes Business Purpose for the transaction  Memo includes an explanation - why did this late entry happen?  This is preventative - explain how this is NOT going to happen again Salary Transfers Must also meet ALL of the Cost Transfer requirements! If later than 90 days, a 90 day memo is still required Additionally:  Total salary must be an accurate reflection of work performed on the project  Business Purpose must indicate name of person who requested the transfer (with signature authority)  Department must maintain supporting documentation in their files  Reminder: payroll records are locked when effort is certified   What NOT to Charge!  Items included in “F&A” are generally not allowed as direct costs on awards  Examples may include: ◦ Administrative and clerical salaries ◦ Copier paper and toner ◦ General office supplies ◦ Telephone line and cell phone charges And Some Exceptions…  OMB Circular A-21 explains in more detail.  In general: ◦ On a “Major Project” direct administrative and/or clerical salaries may be appropriate ◦ These are large, complex programs ◦ Projects that involve extensive data accumulation ◦ Projects that are geographically inaccessible to normal departmental administrative services Know your Retention Policy  Grant retention policies vary; READ YOUR CONTRACT OR GRANT  Payroll does NOT keep copies of timesheets ◦ This is a department responsibility  The years of retention required begin AFTER the final financial report is accepted  If a 3 year grant ends in June of 2014 and has a 7 year retention policy, you must keep original source documents until: Our commitment to you Study Participant Payments  Memo dated November 14, 2012  Merchant and pre-loaded bank cards are the PREFERRED methods for incentive payments  Cash can be used under extreme circumstances ◦ Must follow tightly controlled procedures ◦ Must distribute the money within 3 business days of receiving the funds  After 30-day notification period, any remaining cash funds must be returned to the Cashier’s office Resources  HSC Contract and Grant Accounting Website: http://hsc.unm.edu/financialservices/cga/  Main Campus Contract and Grant Accounting Website: http://www.unm.edu/~cgacctng/  UNM Cost Transfer Policy-2450: http://www.unm.edu/~ubppm/ubppmanual/2450.htm  Cost Transfer Justification Memo template: http://hsc.unm.edu/financialservices/CGA/Forms.shtml  Unrestricted Accounting, Main: http://www.unm.edu/~gacctng/ Any Questions?

Non-Student Invoicing

Presenter: John Brandt, Stacie Hurley, Karen Diaz
Date: 04-17-2012

Presentation - PowerPoint

Non-Student Invoicing Presented by John Brandt, Stacie Hurley and Karen Diaz April 17 & 18, 2012   Non Student Accounts Receivable (NSAR) System  • Is the Unrestricted Accounting billing system • Is used to bill external customers • External customers are outside of the UNM campuses system • External customers typically pay using checks, but sometimes use cash, credit cards, or wire payments (electronic funds transfer) • UNM Hospital (UNMH), UNM Medical Group (UNMMG), and Sandoval Regional Medical Center (SRMC) are considered external customers UNMH, UNMMG and SRMC Transactions There are ongoing transactions for goods and services between UNM Departments and UNMH/UNMMG/SRMC incurred on Unrestricted Funds These include MOUs and salary agreements • Goods and services, provided by UNM Departments to UNMH/UNMMG/SRMC, are billed by HSC Unrestricted Accounting office using the NSAR system • Goods and services, provided by UNMH/UNMMG/SRMC to UNM Departments, are billed by UNMH/UNMMG/SRMC offices through FUPLOADs once per month, and given to HSC Unrestricted Accounting office for processing UNMH, UNMMG and SRMC Transactions All billings to and from UNM Departments and UNMH/UNMMG/SRMC must go through the HSC Unrestricted Accounting office To learn more about these processes, see our LEARN called “Financial Interactions – Hospital and UNM” at our website (presented 11/9/09) http://hsc.unm.edu/financialservices/accounting/LEARN.shtml Memo regarding invoicing external entities      Important Information Departments may not invoice external entities outside these approved systems, to do so is to invite UNM Internal Audit to camp at their doorstep. When a department invoices outside approved systems, the accounts receivable are not posted to Banner General Ledger, cash application cannot be verified and the accounts are not properly aged or allowed for. NSAR System Activity NSAR System Activity NSAR System Activity Top 10 Advantages of Using the NSAR System • Did we mention that you are in compliance with UNM policy • We create collection letters, and do the allowance for doubtful account calculations and create the bad debt reserve JVs on any uncollected invoices • We post  the payments and process the money lists for you • We print and mail the invoices, send copies to you along with your aging reports • We do almost all the work for you • You can access a variety of information and generate reports • You are in compliance with UNM policy • You do not have to wait to receive a payment to recognize your revenue when using NSAR • You have more time to work on other tasks • You do not pay for postage or copy paper NSAR Billing Cycle NSAR Billing Cycle Separation of Duties are important for internal controls and for compliance with various UNM Business policies For instance, HSC Campus Unrestricted Accounting: • Accounting Supervisor creates detail codes and customer IDs • HSC departments create the non-UNM external invoices • HSC Unrestricted Acctg A/R Coordinator creates the invoices for UNMH, UNMMG and SRMC • HSC Unrestricted Acctg A/R Coord prints/scans/mails the invoices • HSC Admin Assistant receive and log checks • HSC Fiscal Svcs Tech posts checks in NSAR and creates money lists • UNM cashiers process the deposits for money lists • HSC Unrestricted Acctg personnel do daily, month-end, and year-end reconciliations such as Live Check log vs. money lists, NSAR Ledger vs. General Ledger, and aging schedules NSAR Billing Cycle Before Requesting a New Customer, determine if this customer is paying using Federal Funds Requesting Customer IDs & Detail Codes What is a Customer ID number? • A customer ID is created to set up an account for a customer • The number issued is used in Banner form TFADETL to bill the customer, post payments and credits • A customer can be a company, organization, educational institution, person, etc. • Billing information to give to Unrestricted Accounting – the name of the customer, physical billing address, contact person, contact phone number • Verify information is correct before request • HSC NSAR customer numbers start with “Y” and Main Campus NSAR customer numbers start with “N” • An example of a Customer ID number to be used later is Y01571497 Requesting Customer IDs & Detail Codes What is a Detail Code? • A detail code is needed to post an invoice into the NSAR system • A Core Office person creates the detail code in Banner • Each detail code is unique; it is used for a particular good or service, and is created with a short description • The requestor provides the index where the revenue is to be posted • It is programmed to post a transaction to a debit and a credit in the system • The debit posts as a receivable to the General Ledger (balance sheet) • The credit posts as a revenue to the Operating Ledger • Once the billing is posted in TFADETL, the Detail Code used creates the accounting entry • An example of a detail code to be used later is YD71: • Debit - 099311  A224  3U0064 • Credit -  099311  07Z0  3U0064 TFADETC – Detail Code Control Form Requesting Customer IDs & Detail Codes E-mail these contacts when requesting a new customer or new detail code: HSC Unrestricted Accounting To: John Brandt – jobrandt@salud.unm.edu Cc: Stacie Hurley – shurley@salud.unm.edu Main Unrestricted Accounting To: Justin Walters – jwalters@unm.edu Cc: Karen Diaz – kdiaz01@unm.edu NSAR Billing Cycle Keying Invoices into NSAR • You must be trained on the NSAR system and have the BAR roles before you can use NSAR • HSC Departments can key non-UNM external customers • Only HSC Unrestricted Accounting keys invoices billed to UNMH, UNMMG and SRMC • All back up documents for invoices keyed by Departments, that need to be mailed with invoices, should be sent to the Unrestricted Accounting offices no later than the end of the next invoice cycle • For invoices to be billed to UNMH, UNMMG or SRMC, all backup documentation must be sent with the request to the HSC Unrestricted Accounting office before the invoice can be created Keying Invoices into NSAR After invoice is keyed into TFADETL, saved, and the session closed: • The amount billed will post as revenue to the index after night train is run • The amount billed will post as a receivable to the fund after night train is run • The billing will post on the same transaction date as the invoice was keyed, but only if the session was closed using TGACREV The following Banner screen shots illustrate how a billing transaction is posted Detail code YD71: • Debit - 099311  A224  3U0064   $1,091.15 • Credit -  099311  07Z0  3U0064   $1,091.15   Keying Invoices into NSAR Keying Invoices into NSAR Keying Invoices into NSAR Keying Invoices into NSAR Keying Invoices into NSAR Keying Invoices into NSAR NSAR Billing Cycle Invoices are printed, scanned and mailed • Unrestricted Accounting offices handle the printing and mailing of invoices • NSAR invoices are marked with Unrestricted Accounting offices’ return address for customers to mail payments • HSC Invoices are printed twice per month, 16th and 1st • Main Campus invoices are printed monthly on the 1st • During June, for year-end close, HSC invoices are printed 3 times per month - 11th, 21th, July 1st • Invoices are scanned, then scans are e-mailed to Departments for their files • Invoices and any backup are mailed to the customers • Copies of invoices and backup are kept in files at Unrestricted Accounting offices NSAR Billing Cycle Checks/payments are received at Unrestricted Accounting offices One employee receives payments: • A witness assists with opening the mail, and observes the handling of checks/cash • Checks/cash received are logged into a password, protected spreadsheet (check log) • Checks are date-stamped and endorsed immediately Checks and cash are put in a locked box and given to another employee, who posts payments in NSAR and creates the money list NSAR Billing Cycle Post payments and create money lists • A different employee posts the payments in the NSAR system the next working day • Any payments by wire transmittal or credit card are also posted at this time • Once payments are posted and balanced, this person creates the money list and takes it to UNM Cashier’s office that same day • The UNM Cashier’s office is responsible for making the deposit at the bank The payment will clear the Accounts Receivable amount for that particular billing as a credit and post the payment as cash in the assigned UNM Bank fund as a debit The following Banner screen shots illustrate how the payment for the previous billing transaction is shown as posted and cleared In TFADETL (billing screen), payment shows as detail code YP01 for HSC and NP01 for Main Campus Post payments and create money lists Post payments and create money lists NSAR Billing Cycle Aging reports are printed and analyzed • First business day of each month, aging reports are run and printed • Department aging reports are sent to Departments based on current billings • Reports are analyzed based on age of invoices, invoice amounts, duplications, total balances, etc. • Totals are balanced to the General Ledger An example of an Unrestricted Aging Report is on the next slide Aging reports are printed and analyzed NSAR Billing Cycle  Collection Letters & Bad Debt JVs Collection letters process • Unrestricted Accounting processes the collection letters for all the Departments • Collections letters are generated and mailed for any invoices aged over 60 days There can be up to 3 Collections letters: • 1st letter – for an invoice that is more than 60 days old • 2nd letter – for an invoice that is more than 90 days old • 3rd and final letter - for an invoice 121 days or older • It is up to the Departments to contact their customers for payments  Collection Letters & Bad Debt JVs Bad Debt JVs process • A bad debt reserve is calculated quarterly using the A/R Aging Report based on a percentage of the outstanding days of the invoices (receivables) for each Department • Any invoices aged over 120 days are reserved as a bad debt for 100% of the amount of the invoice • Unrestricted Accounting does the Allowance for Doubtful Accounts analysis, and creates the Bad Debt Reserve JV • The reserve amount for the total invoices can increase or decrease • The JV amount can post as a debit or credit on a Department’s Operating Ledger to account code 98A0 – Bad Debt Expense NSAR Training, Resources and Contacts NSAR Training, Resources and Contacts Resources: • NSAR Manual • NSAR Class • Non Student Accounts Receivable Website: http://hsc.unm.edu/financialservices/accounting/NSAR.shtml (grey box on left side of the HSC Unrestricted Accounting Website)   NSAR Training, Resources and Contacts Banner Demonstration In Banner, will demonstrate the following tasks: • How to look up a customer using FOAIDEN • How to input invoice using TFADETL • How to post a credit using TFADETL • How to export data from TGIACCD Questions ??

DPI Approval Process

Presenter: Stacie Hurley & Laura Putz
Date: 10-11-2011

Presentation - PDF

  DPI Approval Process   10/11/2011  Stacie Hurley A/R Coordinator Laura Putz HSC Unrestricted Accounting Manager HSC Financial Services Unrestricted Accounting HSC Financial Services Unrestricted Accounting     DPI Process 1)  The DPI is received in the HSC Financial Services Office. 2)  The DPI is logged into the Access Database and date stamped.     3)  Once the DPI is logged into the Database, the DPI will be assigned to an approver. 1 2 3 4 5 Non-Travel DPI C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\W3XMYYZC\MC900431509[1].png       1)  Check account code- •Frequently used Non-Travel account codes: •Books, Periodicals—3110 •Dues, Fees—31C0 •License, Permits—8061 •Participant Fees—4640 •Conference Fees—63A0 •Refer to Account Code Definitions:  http://www.unm.edu/~gacctng/resources/OpLegAcctDef%2003-02-10.pdf 2)  Check Business Purpose •Detailed description and purpose 3)  Check Signatures 4)  Check Backup- •No Tax on Goods •Amount matches DPI amount •Allowable Expense (see Policies 4000/2410 http://www.unm.edu/~ubppm/ubppmanual/2410.htm , http://www.unm.edu/~ubppm/ubppmanual/4000.htm     3 2 1             4 4       The right account Conference Registration- 63A0 1)Conference registration backup should be included with the DPI.   2)If reimbursing employee for registration, We cannot approve the DPI for registration until after the conference has been attended.  –If DPI is disapproved: •An e-mail will be sent to Requestor •DPI will be Disapproved in the queue •DPI will be logged out of the DPI Database •DPI will be returned to Department    3)If paying for registration directly to conference,          ok to process DPI.  Include extra copy of registration to mail          with check.   The right account Participant Fee- 4640   1)Protocol # should be included, if applicable.  2)Records maintained in department.     Computers & Servers- 3189  1)The device must meet HIPAA requirements.  2)Contact IT to ensure that requirements are met.  3)The individual needs to know that this device is property of UNM, and when and if employment is terminated this will be turned in as it is property of UNM.   The right account   Non Capital Equipment- 3180  1.The device must meet HIPAA requirements.  2.Contact IT to ensure that requirements are met.  3.If the device was purchased for a Resident with book fund money, it will belong to the Resident and NOT be tagged as UNM property.      The right account Goods C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\W3XMYYZC\MC900389270[1].wmf     1)  Check account code- •Frequently used Goods account codes: •Business Food-Local—31A0 •Recruitment—31M0 •Staff Recruitment—31M1 •Business Food-Travel—3860 •Food IDC Excludable (Alcohol)—31B0 •Refer to Account Code Definitions:  http://www.unm.edu/~gacctng/resources/OpLegAcctDef%2003-02-10.pdf 2)  Check Business Purpose •Detailed description and purpose 3)  Check Signatures 4)  Check Backup- •List of Attendees- If under 20 participants •Itemized Receipts •Itinerary •Allowable Expense (see Policies 4000/2410 http://www.unm.edu/~ubppm/ubppmanual/2410.htm , http://www.unm.edu/~ubppm/ubppmanual/4000.htm     1 2 3             4           Travel DPI MP910216416.PNG                     1 2 3 4 5 7 6     5       5           6 6     6 4 4           4 7       1)  Check account code- •3820-Out of State Travel •3800-In State Travel •3840-Foreign Travel 2)  Check Business Purpose- •Detailed description and purpose 3)  Check Signatures 4)  Hotel Receipt- •Can be for the day before the conference and the day after. •Original Receipt? •Zero Balance on Receipt? 5)  Airline Itinerary- •Check Departure Date and Time- 1 ½ hrs. before domestic flight, or 2 hrs. before for foreign travel •Check Return Date and Time- 1 hour after for meal per diem •Early Bird Fee- UNALLOWABLE •Original Receipt with a Zero Balance •If paid with P-Card, Expense listed under .Pre-Paid Expense. referencing S Doc # •If an Out of Pocket Expense, should be listed under Section V.       7 6)  Conference Information- •Agenda- Check start and end dates  •Travel dates are one day prior to conference and one day after •Question any additional days •Provides accommodation information such hotel rates, if shuttle is provided, etc. 7)  Meal Per Diem •Is the correct per diem rate being used •Deduct any meals provided, from daily meal per diem •Deduct meals if meals are paid on conference registration •Are meals taken within the departure and return time 8)  Car Rental •Original Receipts •Allowable Expenses-  •No GPS •No Additional Insurances •Justified Rental 9)  Other Misc. Expenses •Original Receipts Included        EXPENSES – REQUIRED INFORMATION 1)  In State Travel—Same day travel—meals are taxed to the employee, taxed amount written at the top of the DPI. 2)  Mileage reimbursement—mileage chart is used on UNM Travel Website, if location is not on the chart an odometer       meter begin and end should be used.  http://www.unm.edu/~ubppm/ubppmanual/4030ex_a.htm 3)  Mileage reimbursed—$.50 per mile 4)  Personal vehicle instead of airfare—a price comparison needs to be done prior to travel.  The same travel dates should       be used.  The lesser of the 2 will be the reimbursement 5)  Business Meals during travel—account code 3860 should be used, amount should be split to correct account code.         Names of participates, how the meeting is beneficial to UNM.  Should also be deducted from the meal per diem, for       each UNM traveler 6)  Misc Expenses-   •Housekeeping Service / Tips •unallowable, included in the per diem rate.  •Internet-   •Allowable, business related, excluded from hotel charges 7)  If traveling with family- only reimburse the expenses associated with the UNM employee.  Amounts need to be       separated from family expenses. 8)  If travel taken with personal days, only those days determined travel days are reimbursable 9)  Foreign travel- all currency conversions need to be included and reimbursed at US Currency. 10)  Foreign Nationals- DPI needs to go through Taxation Dept. first due to tax implications.      OTHER TRAVEL CONSIDERATIONS   PER DIEM RATES October 5, 2011 Albuquerque Journal Regents To Vote On Per Diem  By James Monteleone / Journal Staff Writer   Faculty at the University of New Mexico asked regents Tuesday to put a stop to proposed per diem changes.  Instead, the regents Finance and Facilities committee recommended the full board take a final vote on possible travel policy changes next week. Changes have been under consideration since June, after state officials criticized UNM’s policy of paying per diem meal reimbursements at the federal rate. In cases like a trip to Santa Fe, the federal rate can be more than double the $30 allowed by the state.     Foreign Per Diem Rate Hawaii/ Alaska Per Diem Rate Select correct fiscal year.  Changes in October             Local Meals + Local Incidental = Per Diem Rate             DPI checklist:   DPI checklist:   DPI Approved C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\IJDAIHTJ\MC900442139[1].png 1)DPI logged out of the DPI database  2)   DPI’s are separated by: •Travel •Other DPI’s  3)Bundled separately  4)Sent to Accounts Payable via interoffice mail  5)  DPI’s approved before 2:30 p.m. will make the daily check run.  Anything after that time will be included in the next day’s check run Approved DPI:   DPI Approval queue   DPI Disapproved C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\W3XMYYZC\MC900432533[1].png  Common Errors -  Account Code Error  - # of participants/names missing  - Against Policy -  Backup Info Error  -  Conference brochure/Airline Itinerary missing -  Department Request -  DPI Incomplete  -  Duplicate DPR – Not Processed  -  Employee: Special Comp -  Employee – Must do PR  -  For Approval   -  Honorarium to Employee -  Index Error   -  Information Missing   -  Math Errors -  Original Receipts not Submitted -  Other    -  Pending Department Approval -  Per Conversation  -  Per Diem Error   -  Purpose Error -  Protocol #/Dates of Visit Missing -  Queue Error   -  Receipt not Detailed -  Sales Tax on Goods  -  Services go on Requisition  -  Signature Error -  Wrong Form  -  Zero Balance Airfare Only   -  Zero Balance Travel Disapproved DPI:   1)E-mail .Requestor. regarding issue with DPI  - Wrong Account Code  - Missing Prepaid Expenses   2)Log information into DPI log (this information is updated daily for review by the department)  3)Requestor has 5 days to update the DPI or make changes to the DPI, if not done within the time frame the DPI is Disapproved and sent back to the Dept.     DPI’s with Errors DPI disapproved •Go to FOAAINP in Banner and Disapprove DPI •Message Box will appear •Provide code as to why it is disapproved, see list of codes •Type in additional information as to why it is disapproved •Send E-mail to requestor •Log information into DPI log                 DPI Tools C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\HSSCHXT4\MC900432556[1].png UNM Policy 4320A (Revisions Pending)   DPI Status online •Go to General Accounting Website:  http://www.unm.edu/~gacctng/  •Also on HSC Unrestricted website under “Resources” •Click on “Document Search” •Click on “HSC Search” •Enter in DPEZ # then Search •Status information will be provided •Information updated daily by Unrestricted Admin. Assistant                Status in Banner •Go to FOIDOCH in Banner •Enter in INV, under Document Type •Enter in DPI “I#”, then Next Block •Click inside the Invoice Block •Click the Xtender Icon (looks like magnifying glass) •DPI is available for review       1 2 1 2       DPI Stats C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\IJDAIHTJ\MC900205594[1].wmf     Top 10 reasons a DPI is denied: 10) The Business Purpose for the expense is inadequate or unclear.  Explain how the expense benefited UNM.  Do not merely state what was purchased. http://xmindshare.s3.amazonaws.com/thumb/business-purpose-and-objectives-mxxxx-1282054053366.jpg Top 10 reasons a DPI is denied: 9) The DPI has already been submitted; the current DPI is a duplicate. http://www.seo.com/wp-content/uploads/2010/11/duplicate-content.png Top 10 reasons a DPI is denied: 8) Unallowable Sales Tax was included in the reimbursement.  UNM does not generally pay gross receipts tax or reimburse gross receipts tax when it has been paid on tangible property from non governmental agencies. (restaurant purchases are an exception) http://www.winner-aviation.com/show-image.php?img=1006 Top 10 reasons a DPI is denied: 7) The wrong form or payee type was selected.  Payments for services rendered must be on a Purchase Order. http://t1.gstatic.com/images?q=tbn:ANd9GcTAE3u3ucxMPoV-VOJ3Tu7OkqE85hgx9ZC0Fawehe0TGLVMAevs9w Top 10 reasons a DPI is denied: 6) The department or originator requested that the DPI be denied.  You can deny your own DPI by using form FOADOCU in Banner. http://www.310electro.com/wp-content/uploads/2010/08/requests.jpg Top 10 reasons a DPI is denied: 5) Original receipts are not included with the DPI.  If any other form of documentation is used other than the original receipt, such as a credit card statement, a memo with the signed department statement assuming responsibility for duplicate payment needs to be included with the backup. http://t3.gstatic.com/images?q=tbn:ANd9GcSwLBGQgC7d8HluB0PD821PTf8QlN1ShKSsIcTQ53_FNoxoVEeuTw Top 10 reasons a DPI is denied: 4) The DPI contained a Policy violation.  -Unallowable alcohol purchases  -reimbursement of conference fees before the conference has     occurred  -holiday decorations  -gifts for employees  -donations  -early bird check-in (airline travel) http://t1.gstatic.com/images?q=tbn:ANd9GcS1KjCw7qkLKp2huSwoUNAZSK9qa4Lj-aTw24wgcKh2LINNvSriaA Top 10 reasons a DPI is denied: 3) The DPI or backup documents were not received in our office within 10 days. http://avantwhat.files.wordpress.com/2011/01/late.gif Top 10 reasons a DPI is denied: 2) The incorrect account code was selected.  The account code must be within the correct account code area, and in some cases (ie: computer items) must be a particular code.   http://www.silhouettesclipart.com/images/Accounting-Clip-Arts.jpg And the #1 reason a DPI is denied: 1) The DPI involves travel.  Meal calculation errors, wrong per diem rate chosen, pre-paid items not on DPIs or pre-paid errors, lodging errors, and mileage calculation errors. http://www.tsata.com/images/travel.PNG Questions? C:\Users\SEBegay\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\W3XMYYZC\MC900431548[1].png  

Handling Travel Expenses

Presenter: Terry Shoebotham
Date: 10-11-2010

Presentation - PDF

    October 11th& 12th, 2010 Presented by Terry Shoebotham Business Management Specialist Handling Travel Expenses                                       Policy Updates .UNM’s Travel Policy was updated 7/1/10 .Changes made are in Bold REDon your Policy handout   http://www.wickersleykidsclub.co.uk/images/policies_400.gif   Questions that Arise… http://www.themillionairesecrets.net/images/2008/12/questions.gif http://www.themillionairesecrets.net/images/2008/12/questions.gif http://www.themillionairesecrets.net/images/2008/12/questions.gif   Frequent Flier miles are reimbursable: A.Only to the amount of the lowest available similar flight, even if that flight is on a different airline. B.Never. C.When permitted by department practice. D.Both A. and C.   When are frequent flier miles reimbursable? 1   Frequent Flyer Mileage .(7.1.1)The use of frequent flyer miles are not actual out-of-pocket expenses and ARE NOT REIMBURSABLE.   3074_frequent_flyer_cartoon.gif   A.No additional insurance should be purchased from the rental car vendor. B.The business purpose is self explanatory since when traveling by plane you need a car at your destination. C.Generally a GPS is allowable as a rental car add on if the department practice is to allow this add on. D.All of the above may be applicable   When renting an automobile, 2   A. Insurance (7.3.1) For insurance purposes the State of New Mexico Risk Management Division treats cars rented by UNM employees and students for UNM business as if they were UNM vehicles.  NO ADDITIONAL INSURANCE SHOULD BE PURCHASED FROM THE RENTAL CAR VENDOR. Risk%20Management[1].jpg   B. Business Purpose .(7.3) The business need for the rental car must be fully explained on the reimbursement request.   http://bradplumb.com/images/benfranklin.gif   C. Global Positioning System (GPS) (7.3.2) Generally, the GPS feature offered by rental car companies is not considered an “ordinary and necessary expense” and payment for this feature with University funds IS NOT NORMALLY AUTHORIZED. no_gps.jpg   A.For personal automobile mileage is set at 55  cents/mile by UNM Policy. B.For travel by personal car will always be reimbursed if it is chosen over air travel. C.For taxi fares may be reimbursed for travel to and from a business destination such as airport, hotel, conference site. D.Both A. and C.   Reimbursement: 3   A. Personal Automobile Reimbursement Rate (7.4) Each department should decide and communicate if they will reimburse at a lesser rate than UNM’s maximum rate, which at present is: $.50 per mile   B. OUT OF STATE MILEAGE (7.4.3) Reimbursement for expenses incurred when traveling by personal automobile in lieu of air travel for out-of-state travel may not exceed the cost the traveler would have otherwise incurred if the traveler had flown. afraid%20of%20flying-saidaonline.jpg   C.(7.6)Taxi fares may be reimbursed for travel to and from a business destination such as airport, hotel, conference site, or other location necessitated by the business trip.  taxi.jpg   A.A full service rental service at competitive rates B.Zipcarvehicles are available for rental for University business C.Both A. & B. D.UNM does not rent vehicles.   UNM Provides: 4   A. (7.7) The University Physical Plant Automotive Center provides a full-service rental service at competitive rates.  Refer to “Use of University Vehicles” Policy 7780, UBPmore information. instrveh_fleet.jpg UNM   A.Travel expenses, excluding meals, may be purchased with a University Purchasing Card (Pcard) B.As an alternative to using the Pcarda traveler may use personal funds to pay for the travel expenses and request reimbursement using the DP-EZ process after they return from Travel C.If a Pcardis used to make travel purchase that are not in compliance with UNM Policy, the cardholdermust immediately reimburse the University for the disallowed expense. D.All of the above are correct.   PcardUsage and Travel: 5   A. PROCUREMENT PROCEDURES .Travel expenses, excluding meals, may be purchased with a University Purchasing Card (Pcard)   meal-m.jpg X   B. PROCUREMENT PROCEDURES .As an alternative to using the PCarda traveler may use personal funds to pay for the travel expenses and request reimbursement using the DP-EZ process after they return from the travel.   money.jpg   C. PROCUREMENT PROCEDURES .If a PCardis used to make travel purchases that are not in compliance with this policy, the cardholder must immediately reimburse the University for the disallowed expenses.   Fist%20of%20Money.gif   A.Will only be considered and authorized on an exception basis. B.Are unchanged and must be well documented C.Are subject to final approval by Financial Services D.A. and C.   Travel Advances 6   Questions to Refresh your Memory! .This review may help you get your DPEZ processed more quickly by Financial Services.   http://www.gwoltal.myfastmail.com/files/Elephant   The business purpose in the DPEZ should: 7 A.Include the name of the traveler and his/her destination B.Detail the travel dates of the trip C.Summarize any conference details so no conference brochure is required D.Explain who went where, why they went, how the trip furthers University business, and when the trip occurred.       When submitting a DPEZ: 8 A.Send the DPEZ to Financial Services as soon as you complete it, then forward the documentation as you obtain it. B.Select “prepaid other” for Pcarditems. C.The DPEZ should not be submitted until all the prepaidsare included. D.The accounting office you select in the DPEZ for offsetting travel advances is unimportant, as long as the DPEZ itself is forwarded to the correct office.       Per Diem: 9 A.Flat per diem requires lodging receipts B.Meal per diem(Meal and Incidental Expense) usually includes lodging receipts as well C.Conference meals are not allowed when Meal per diem is used D.The flat per diem rate is $115 for all travelers, per 24 hour period       When purchasing a plane ticket: 10 A.A minimum of three price quotes should be checked before purchase B.The lowest fare is always the Economy fare C.Seating preferences may preclude using the lowest fare, as long as it is documented D.A “red eye” fare is required to be purchased, if it is the lowest priced fare       The GSA [U.S. General Services Administration] per diem table: 11 A.Is used to determine meal per diem rates in all 50 of the United States B.Meal and Incidental Expense column is the only column used on this table C.Is used to determine international per diem rates D.Both A & C       Moving Expenses: 12 A.When involving plane fare and meals, are treated just like travel expenses B.Are all expensed in account 38L0-Moving Expenses C.Only the movement of a new employee’s household goods belongs in 38L0-Moving Expenses D.Pre-move house hunting expenses are expensed as a recruitment expense.  The expenses associated with the actual move are expensed in 38L0-Moving Expenses.       Official University business must be conducted greater than ___ miles from place of business to receive reimbursement other than mileage. 13 A.25 B.50 C.20 D.10       Pcardtravel transactions can be reallocated to another index code by: A.Processing a DPEZ to reconcile the transaction-the charge will post to the index used in the DPEZ B.Using the PcardWorkflow to associate the transaction with a DPEZ that has already been created but the correct index and/or account is not used in the DPEZ. C.Reallocating in Banner form FWAINVT D.Processing a Journal Voucher to  move the charge to the correct index and account code. E.Both C & D   14     For purposes of computing the per diem allowances, travel time: 15 A.Does not include the time required to travel from the traveler’s residence to his place of employment B.Includes the time required to commute from the traveler’s home to the airport C.Includes time required to purchase sandwiches for the trip D.Includes travel time by car, even if travel by plane would have been less expensive       For commercial transportation, the traveler is allowed (for per diem purposes): 16 A.One and a half hours (1 ½) of  additional time before the scheduled departure for domestic travel B.Two hours (2) of additional time before scheduled departure for international travel C.One hour (1) after scheduled arrival home for both domestic and international travel D.All of the above       An employee may be reimbursed the cost of parking at the airport, or: 17 A.The cost of transportation to and from the airport, if this cost is less than parking at the airport B.The cost of mileage to and from the airport, if this cost is less than parking at the airport C.The cost of transportation to and from the airport, or reimbursement for mileage to and from the airport, if either cost is less than the cost of parking at the airport D.Only the cost of parking at the airport is an allowable expense       The preferred way to purchase airline tickets, conference fees and hotel charges is the: 18 A.Use of traveler’s personal credit card B.DPEZ form C.P-Card D.Cash       The appropriate per diem rate used by a traveler is based on: 19 A.The location of the traveler’s hotel B.The location where the business event occurred C.The location with the most reasonable per diem rate D.The location where the traveler spent the most time       A traveler’s per diem is W2 reportable when: 20 A.It is the law in the state traveled B.The traveler’s destination is in New Mexico C.The traveler has an overnight stay D.The traveler does not have an overnight stay       A “flat” per diem rate of $85.00 is reimbursed to the traveler and is: 21 A.In lieu of receipts for lodging and meals B.Intended for the state of New Mexico only C.Intended for each twenty-four hour period D.All of the above       A “flat” per diem rate of $115.00 is reimbursed to the traveler and is: 22 A.In lieu of receipts for lodging and meals B.Intended for International travel and all of the U.S., except New Mexico C.Intended for each twenty-four hour period D.All of the above       Other than using the “flat” per diem rates, a second method of reimbursing a traveler for meals and lodging is: 23 A.Actual lodging expenses plus a per diem meal reimbursement B.An amount deemed reasonable for the area C.What the department head authorizes D.All of the above       All per diem rates specified are the maximum that may be claimed unless: 24 A.The traveler’s meal qualifies as a conference meal B.The traveler chooses to submit actual receipts C.The traveler’s department authorizes  an additional amount D.All of the above       When attending a conference, which is false: 25 A.Meals included in the conference reduces meal per diem reimbursement B.Travelers must attach a copy of the conference advertisement to the DPEZ form C.Continental breakfasts provided by the conference does not require a reduction in per diem D.Conference meals cannot be reimbursed; the traveler is reimbursed at per diem rates only       The traveler left at 6am and returned the next day at 1pm. What meals will the traveler be entitled to? 26 A.One breakfast, one lunch, and one dinner B.Two breakfasts, one lunch, and one dinner C.Two breakfasts, two lunches, and one dinner D.One breakfast, two lunches, and one dinner       Which of the following miscellaneous expenses are included in the IRS per diem rates, and should therefore notbe separately claimed? 27 A.Safe arrival call home not to exceed $10.00 B.Luggage handling and maid service tips C.Taxi fares and tips D.Copy, internet, and fax charges used for University business       Travelers requesting reimbursement for expenses paid in foreign currency must: 28 A.Use the exchange rate at the time of travel B.Attach the exchange rate documentation to the DPEZ C.Use the exchange rate at the time of travel and attach the documentation to the DPEZ D.Use Euros or Pesos during travel       A travel advance is a (an): 29 A.Expense to the traveler’s department B.Loan between UNM and the traveler C.Expense to the traveler D.Loan between the department and the traveler       A Travel Advance: 30 A.Is easy to initiate and process B.Does not require approval by the Central accounting office C.Can be repaid to any of the University’s Central Accounting Office cash accounts D.Is a labor intensive operation that is allowed only by special exception received in advance from Financial Services       After completion of the travel, the DPEZ for the traveler must be submitted to the appropriate accounting office within: 31 A.The current fiscal year B.Six months C.10 working days D.15 working days       Resources: The EOD 385 Travel Policies and Procedures class, newly revised, is strongly recommended for all persons creating, signing, or approving travel DPEZs The next class will be held on Thursday, November 11th.  

Using Self-Service for Labor Redistributions

Presenter: Laura Putz, Alana Watts
Date: 09-13-2010

Presentation - PDF

• Designed to be “user friendly” • Labor Redistributions function now available • User must have BAR role for Labor Redistributions (new role is NOT needed) • Organizational level security required (not a NEW requirement) Lobo Web Labor Redistributions Advantages/Benefits • Comments do not DISAPPEAR • Comments can be viewed • Comments can be added at any time • Potential elimination of paper “90 day memo” with combination of comments and “On the Fly” approver Disadvantages • Limited ability to correct multiple pay periods at once • Must enter comments separately for each pay id • Processing time –maybe slow depending on individual computer • Intermittent log‐in issues Attribute Recommendations Attribute criteria recommended for fast system response: ID (Banner ID Number) Pay ID (5R or 2R) From Pay Year (Calendar Year: 2008, 2009 0r 2010) Find and Replace • Only used to change INDEX • If FUND does not populate on index, the FUND is closed and redistribution will be directed to OVEREXPENDITURE index This field can now substitute for a 90 day memo. Include all required information that is required in the 90 day memo. Policy 2450 –90 Day Memo Documentation required: • description of the cost, • reason for transfer, • explanation as to how the receiving sponsored award benefits from the cost, • justification of allowability of the cost to receiving sponsored award, • corrective action taken to ensure transfers are not required in the future (if applicable), and • On the Fly (OTF) approval from dean, director or their designee and an explanation for delay if correction exceeds ninety (90) days after original charge. HSC OTF Designees Unit Designee Net ID HSLIC Marcia Sletten MTRUAX SOM Katherine Rebolledo KREBOLLE CON Penny Fishel PFISHEL COP Chelsea “Beth” Walker BWALKER Routing Queue Review Sequence 10 – FYI indicates a 90 day memo is required Sequence 70 approver is Fiscal Monitor listed on Grant – may have more than one hrp_banp – HR/Payroll Report –Production (banp) Repository • PZROLRO –Pending Labor Redistribution by Organization • PZROLRR –Labor Redistribution by Originator • PZROLRV –Labor Redistribution by Approver And More…….by Alana Operating Ledger Queries • Drilling down to item level detail • Exporting to Excel • Encumbrance Queries • Viewing Documents • Approving Documents • Creating Journal Vouchers

UNM Chart of Accounts Hierarchy

Presenter: Laura Putz
Date: 08-09-2010

Presentation - PowerPoint

UNM Chart of Accounts Hierarchy   Presented by Laura Putz August 9 & 10, 2010 (revised for reserves 11/8/11) UNM Organizational Structure and Account Hierarchy  FOPA Hierarchies and Index Code  How UNM is organized for reporting purposes  Chart of Accounts Structure  How accounting data is recorded and reported  Hyperion Reporting  Banner Forms   What does this mean?  You run a Hyperion report:  It has data that was in Banner the night before.  If a JV posted yesterday and you run the report today, you will see the posted JV reflected in the data for the reporting period.  You drill down on a Banner Form to see report data:  This data is what is currently in Banner.  If a JV was approved and posted an hour ago, that JV will be reflected in the data you are viewing.  It will NOT be reflected in your Hyperion report until tomorrow. First, the way UNM is structured: Index- Speed dial to FOPA Purpose:  Facilitates feeder systems  Facilitates data entry  Reporting Index to FOPA Examples Index 258000 = 3u0044258BP131GNACTV Index 043420 = 3U0034043BP222043E01 Index 8510V4 = 379H0851N13P17RGNACTV Which do you prefer??? FOPA Structure-Fund Fund  Designates a fiscal and accounting entity with a self-balancing set of accounts  Connection point between GL and OL  Must have a financial manager  Determined by SOURCE of funds Organization   A permanent unit with assigned employees and operational budget  Must have a financial manager Program  Designates NACUBO functional classifications such as: Instruction, Research, and Public service.  Used primarily for Higher Education Department (HED) reporting Activity  Is an event, conference, center or other designations that require separate income statement (revenue and expense) tracking Fund Hierarchy  If a report is run at Fund level 2, 3U56-HU General Clinical Service - all 13 funds that roll up into this fund will be included.  Contra Program reflected in reports impact reserves reporting at Level 1 and Level 2.  If a report is run at Fund level 3, 3U0029-HU Clinical Residuals - all indices that roll up into this subset.  This will NOT include any indices in other level three funds. Fund Hierarchy in Banner - FTIFNDH Eprint-Fund Hierarchy Report FOPA Structure-Program Fund  Designates a fiscal and accounting entity with a self-balancing set of accounts  Connection point between GL and OL  Must have a financial manager Organization   A permanent unit with assigned employees and operational budget  Must have a financial manager Program  Designates NACUBO functional classifications such as: Instruction, Research, and Public service.  Used primarily for Higher Education Department (HED) reporting  Should be consistent with Fund choice Activity  Is an event, conference, center or other designations that require separate income statement (revenue and expense) tracking Program Hierarchy  If a report is run at Program Level 1 for Research, data for ALL indices that have a Research program will be included.  Contra-programs included if reports generated by Fund Level 1 or 2  If a report is run at Program Level  3, only data for indices for that specific Program or Project will be included. Program Hierarchy in Banner - FTIPRGH Eprint-Program Hierarchy Report FOPA Structure-Organization Fund  Designates a fiscal and accounting entity with a self-balancing set of accounts  Connection point between GL and OL  Must have a financial manager Organization   A permanent unit with assigned employees and operational budget  Must have a financial manager  Levels 1 – 4 determined by institution  Levels 5 – 8 determined by department Program  Designates NACUBO functional classifications such as: Instruction, Research, and Public service.  Used primarily for Higher Education Department (HED) reporting Activity  Is an event, conference, center or other designations that require separate income statement (revenue and expense) tracking FTMORGN FTMORGN Drill Down Organizational Hierarchy  Reports run at the “AF” Organizational level (Level 2) will have all index data that rolls up into the AF (VP Health Sciences Center) Organization  Reports run at the  “997B” organizational level (Level 6) will have all index data that rolls up into the 997B (Pediatrics Administration Division) Organization, which is WITHIN the VP Health Sciences Center (AF) Level 2 organization. Eprint-Organizational Hierarchy Report FOPA Structure-Activity Fund  Designates a fiscal and accounting entity with a self-balancing set of accounts  Connection point between GL and OL  Must have a financial manager Organization   A permanent unit with assigned employees and operational budget  Must have a financial manager Program  Designates NACUBO functional classifications such as: Instruction, Research, and Public service.  Used primarily for Higher Education Department (HED) reporting Activity  Is an event, conference, center or other designations that require separate income statement (revenue and expense) tracking  Does not have a hierarchy structure  Determined by department Activity  Most HSC reports can be run based on activity  Departments can use Activity codes to simplify reporting  Provides grouping options for reporting Eprint-Activity Codes Report Hyperion Reporting Activity Reporting Account Hierarchy in Banner-FTIACTH Account Hierarchy and Reporting Eprint-Account Hierarchy Report Account Code Resources  Utilizing Index and FOPA Hierarchies in Reporting Hyperion  Reporting from Operational Data Store (ODS)  Web based  User identified parameters  Report formatting flexibility (grouping options)  Ability to export data to other formats (xls, txt, pdf) Utilizing Index and FOPA Hierarchies in Reporting FOHH001&1 Dashboard Hyperion Reporting Hyperion Reporting Hyperion Reporting FGH0001&2 Dashboard Hyperion Reporting FRH0001&2 Dashboard Hyperion Reporting Hyperion Reporting Utilizing Index and FOPA Hierarchies in Reporting Banner Forms  Real-time information access  Web availability  Roll-up and drill-down capabilities  Output can be sent to Microsoft Excel  Takes advantage of Banner features Useful Banner Forms Useful Banner Forms - FGIBDST Useful Banner Forms-FGIBDSR Useful Banner Forms - FGITBAL Useful Banner Forms - FGITBSR Useful Banner Forms - FRIGITD Useful Banner Forms Questions?

Treatment of Prior Fiscal Year JVs

Presenter: John Brandt
Date: 07-19-2010

Presentation - PDF

      11/3/2011 1 Treatment of Prior Fiscal Year JVs Presented by John W. Brandt July 19-20, 2010  in collaboration with: HSC Budget Office Main Campus Budget Office Main Campus General Accounting HSC Unrestricted Accounting & Reporting  Updated 10/2011                                         11/3/2011 2 Items Presented  I.   What are Prior Fiscal Year JVs II.  Understanding Reserves III. Crossing Level 2 Funds and/or Programs IV. Accounting Treatment Guideline V. Allocations, 8045, and Transfers VI. Checking GUAMESG in Banner       11/3/2011 3 I. What are Prior Fiscal Year JVs? .Prior Fiscal Year JVs are used for transactions that were posted in the prior fiscal year .Prior Fiscal Year JVs that move a transaction between a restricted index and an unrestricted index can be processed using the same accounting treatment per the Cost Transfer Rules (UBPPM 2450) .Prior Fiscal Year JVs that move transactions between only unrestricted funds require a different accounting treatment         11/3/2011 4 Prior Fiscal Year JVs Unrestricted index to Unrestricted index Is the Primary Focus of this LEARN Session .Transactions can be either expenses or revenues .Accounting treatment is based on certain aspects of the indices involved .Accounting treatment is then based on recommended best practices .Accounting Treatment is a hierarchy decision tree          11/3/2011 5 II. Understanding Reserves This section: 1.Characteristics 2.Typical Reserves Entries 3.The 3 Reserves Account Codes 4.Formula to Calculate Net Available Reserves Amount 5.Using 1903 to Correct Prior Fiscal Year Entries 6.How Revenues/ Expenses Become 1900-Reserves         11/3/2011 6 Reserves-Characteristics .The net surplus or deficit of revenues and expenses at fiscal year end .Used for Unrestricted indices only .Finance System Management (FSM) rolls forward, the net surplus or deficit for every unrestricted index, from prior fiscal year to new fiscal year .Done via account code 1900          11/3/2011 7 Reserves -Characteristics .Can move actual Reserves without moving budget .Can budget later if need the funds (SOM requires advance approval) .Must be budgeted to be spent .Similar to Starting Balance in your checkbook         11/3/2011 8 Typical Reserves entries .From one index to another to cover a deficit or fund another index .To zero out an index that only contains a Reserves balance. .Correct prior year entries         11/3/2011 9 The 3 Reserves Account Codes  19xx – Are revenue account codes   .1900 – Used only by FSM .1901 – Used to Budget Reserves amounts to be spent or recovered in current fiscal year .1903 – Used to move Reserves amounts         11/3/2011 10 Formula to Calculate Net Available Reserves Amount This formula is used when moving funds between unrestricted indices within the same level 2 funds and programs   Plus  + 1900 amount Less  -  1901 amount Plus  + 1903 amount Net available Reserves amount             11/3/2011 11 Formula to Calculate Net Available Reserves Amount Example #1:     1900 = $1,200.00                          1901 =      500.00                          1903 =     (250.00)   Plus  + $1,200.00 Less  -      500.00 Plus  +    (250.00)                 $450.00   $450.00 is the net surplus amount of Reserves that is available that can be debited, i.e., that can be reduced to increase (credit) Reserves for the receiving index.       11/3/2011 12 Formula to Calculate Net Available Reserves Amount Example #2:     1900 =  $700.00                          1901 =    500.00                          1903 =   (250.00)   Plus  +   $700.00 Less  -      500.00 Plus  +    (250.00)               $(50.00)   $50.00 is the net deficit amount of Reserves. It CANNOT be debited or used to increase (credit) balance forward for the receiving index.  Must use another method to correct or move transaction.       11/3/2011 13 Using 1903  to Correct Prior Fiscal Year Entries .Must be used with UNRESTRICTED indices only within same level 2 funds & programs .1903 must be used on both sides of the entry (debit & credit) .Total 1903s must net to zero .Used after the year end accounting records are closed   11/3/2011 14 Example #1 - How Revenues/ Expenses Become 1900-Reserves   Reserves Change in Reserves 11/3/2011 15 U U Example #1 - How Revenues/ Expenses Become 1900-Reserves Reserves       11/3/2011 16 III. Crossing Level 2 Funds and/or programs Due to UNM's reporting requirements, cannot use 16xx or 19xx to move funds between level 2 Funds and/or Programs   1.For example, cannot use 1903 or 1660 to move funds between 3U0002 and 3U0034, between 2U0224 and 2U0070, between 3U0034 and 2U0070, etc. 2.For example, cannot use 1903 or 1660 to move funds between P171 and P181 programs 3.Exception – funds can be moved between I&G level 2 programs P09, P10, P11, P12, P13 and P14   See the following diagram examples 11/3/2011 17   11/3/2011 18   11/3/2011 19       11/3/2011 20 IV. Accounting Treatment Guideline 4 Scenarios for Prior Fiscal Year JVs  1.Restricted to/from Unrestricted 2.Same index 3.Unrestricted to Unrestricted – Same level 2 fund and/or level 2 program  4.Unrestricted to Unrestricted – Crosses level 2 fund and/or level 2 program         11/3/2011 21 Accounting Treatment Guideline Prior FY Scenario #1 - FY11 JV Correcting FY10 Transaction Restricted to/from Unrestricted Indexes    For Example: Dr    160888   31S0     358Jx                     Cr    160999   3100     3U0032    Allowed - follow normal Journal Voucher guideline         A restricted index can supersede the Prior Fiscal Year JV rules because of the federal cost transfer requirements.  (See UBPPM Policy 2450 - Cost Transfers) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^See the following example that moves a prior fiscal year lab expense of $31.65. Posted 5/18/10 in 160999  3100.        11/3/2011 22 Change in Reserves Reserves 11/3/2011 23   11/3/2011 24   11/3/2011   11/3/2011 26 Reserves 11/3/2011 27 Reserves 11/3/2011 28       11/3/2011 29 Accounting Treatment Guideline Prior FY Scenario #2 - FY11 JV Correcting FY10 Transactions  Same Unrestricted Index      For Example:       Dr    497999   63A0     3U0032                     Cr    497999   3100      3U0032   Not allowed - cannot move a prior year expense or revenue transaction within the same index.             The original expense from FY10 has carried forward into account code 1900- Reserves in FY11. It is no longer located in account code 3100; it is in 1900. Re-classing it within the same index from 3100 to 31K1 creates a misstatement within the index for FY11.  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^      See the following example of why CANNOT move a prior fiscal year conference fee expense of $2,200. Posted 5/18/10 in 497999  3100.          11/3/2011 30 Reserves Change in Reserves 11/3/2011 31 Reserves Change in Reserves 11/3/2011 32 Reserves Change in Reserves       11/3/2011 33 Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - SAME level 2 fund/level 2 program For Example:       Dr    254999   63A0     3U0032                   Cr    497999   63A0     3U0032   Allowed – using the following decision tree hierarchy   1) Use 1903 up to surplus of 19xx available  (+1900 - 1901 + 1903 ) 2) Use 1660 if - available to use or can be created (must be budgeted) 3) Use 8045 when 19xx surplus becomes zero or less or when 1660 cannot be used (8045 rules apply) 4) Use JET/BDT - 11xx and 12xx  when cannot use 1903, 1660 or 8045                   Refer to :      Hyperion FORH008-HSC Transfers Allocations    or Hyperion FBRH0Z1-Transfer or Allocation Made on Main & Branch Campuses         11/3/2011 34 Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - SAME level 2 fund/level 2 program Example #1 – surplus 19xx - moves a prior fiscal year conference fee expense of $2,200 from 497999 to 254999.  Posted in FY10 on 4/12/10 in 497999  63A0.   .In FY11, YTD, there is a net surplus in 19xx of $3,025.16 in index 497999 .1903 can be used to move the $2,200.   11/3/2011 35 Change in Reserves Reserves 11/3/2011 36 Reserves Budgeted use of Reserves Change in Reserves 11/3/2011 37 Budgeted use of Reserves Reserves Change in Reserves       Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction      Net Balance Forward         Plus  + 1900     $   8,235.57         Less  -  1901          2,000.00         Plus  + 1903         (3,500.00)   Available net            $   2,735.57  =  surplus   11/3/2011 38 11/3/2011 39   11/3/2011 40 Move using Reserves since Prior Fiscal year 11/3/2011 41 Reserves Change in Reserves 11/3/2011 42 Reserves Change in Reserves 11/3/2011 43 Reserves Change in Reserves Budgeted use of Reserves       11/3/2011 44 Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - SAME level 2 fund/level 2 program Example #2 – deficit 19xx, but have 1660 - moves a prior fiscal year respiratory equipment expense of $5,312.50 from 8512X3 to 85116A. Posted in FY10 on 6/21/10 in 8512X3  9000.   .In FY11, YTD, there is a net deficit in 19xx of $214.39 in index 85116A .There is no 1660 or 16xx planned in 497999’s budget .However, account code 8045 cannot be used because the transaction is over the $5,000 single transaction .In this scenario, the best practice would be to use 1660 to move the funds. It would have to be budgeted, and the budget also moved since there is no budget   11/3/2011 45 Reserves Change in Reserves 11/3/2011 46 Reserves Change in Reserves 11/3/2011 47 Reserves Change in Reserves       Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction      Net Reserves         Plus  + 1900     $ (307.01)         Less  -  1901             0.00         Plus  + 1903            92.62  Available net            $  (214.39)   =  surplus   11/3/2011 48 11/3/2011 49 11/3/2011 50   11/3/2011 51   11/3/2011 52 11/3/2011 53 Reserves Change in Reserves 11/3/2011 54 Reserves Change in Reserves     11/3/2011 55 Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - SAME level 2 fund/level 2 program Example #3 – deficit 19xx - moves a prior fiscal year conference fee expense of $2,200 from 254999 to 497999. Posted in FY10 on 4/12/10 in 254999  63A0.   .In FY11, YTD, there is a net deficit in 19xx of $1,211.42 in index 497999 .There is no 1660 or 16xx planned in 497999’s budget .Neither 1903 or 1660 should be used in this scenario .Account code 8045 is the best option to move the expense; it is under $5,000 and will not put either 497999 or 254999 over annual $20,000 limit .Remember, Banner tax is not calculated on 1903, 16xx or 8045   11/3/2011 56 Reserves Change in Reserves 11/3/2011 57 Reserves Change in Reserves 11/3/2011 58 Reserves Change in Reserves     Accounting Treatment Guideline Prior FY Scenario #3 - FY11 JV Correcting FY10 Transactions       Net Reserves:         Plus  + 1900     $ (2,311.42)         Less  -  1901                0.00         Plus  + 1903          1,100.00   Available net             $ (1,211.42)  =  deficit   11/3/2011 59 11/3/2011 60   11/3/2011 61 Net Reserves for 497999 has a deficit balance 11/3/2011 62 Reserves Change in Reserves 11/3/2011 63 Reserves Change in Reserves Budgeted use of Reserves       11/3/2011 64 Accounting Treatment Guideline Prior FY Scenario #4 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted – CROSSES level 2 fund/level 2 program  For Example:     Dr    523999   3189     3U0029   Cr    497999   3189     3U0032     Use the following decision tree hierarchy 1)  Use 8045 if meets rules - <$5,000 / <$20,000, etc.  2)  If cannot use 8045, use JET\BDT - 11xx and 12xx                      Refer to :      Hyperion FORH008-HSC Transfers Allocations    or Hyperion FBRH0Z1-Transfer or Allocation Made on Main & Branch Campuses         11/3/2011 65 Accounting Treatment Guideline Prior FY Scenario #4 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - CROSSES level 2 fund/level 2 program Example #1 – Use 8045 - moves a prior fiscal year computer expense of $1,762.50 from 497999 to 523999. Posted in FY10 on 6/9/10 in 497999  3189.   .497999 is fund 3U0032 and 523999 is fund 3U0034, 2 different level 2 funds .Neither 1903 or 1660 can be used in this scenario .Account code 8045 is the best option to move the expense; it is under $5,000 single transaction limit   11/3/2011 66 Reserves Change in Reserves 11/3/2011 67 Reserves 11/3/2011 68 11/3/2011 69       11/3/2011 70 Accounting Treatment Guideline Prior FY Scenario #4 - FY11 JV Correcting FY10 Transaction Unrestricted to Unrestricted - CROSSES level 2 fund/level 2 program Example #2 – use of transfer codes – this scenario moves a prior fiscal year UNMH invoice of $19,150.00 from 523999 to 497999. Posted in FY10 on 6/28/10 in 523999  69Z0.   .497999 is fund 3U0032 and 523999 is fund 3U0034; different level 2 funds .Neither 1903 or 1660 can be used in this scenario .Account code 8045 cannot to move the FY10 expense because it would result in pushing index 497999 over the $20,000 annual transaction limit .$19,150 PY expense + $2,100 (already debited in 497999  8045) .Best option is to move expense using JET and BDT rule class codes   11/3/2011 71 Reserves 11/3/2011 72 Reserves 11/3/2011 73 Reserves Change in Reserves 11/3/2011 74   11/3/2011 75   11/3/2011 76 11/3/2011 77 11/3/2011 78 Reserves Change in Reserves 11/3/2011 79 Reserves     V. Allocations, 8045, and Transfers 1.Allocations 2.8045 3.Transfers 4.Transfer or Allocation Decision Tree 5.Allocation/Transfer Aide 6.Sample Reports – Transfer 7.Other JV tips   11/3/2011 80       Allocations .Revenue associated with the same fund level 2 and program level 2. .Unrestricted Revenue .Generally use 1660-Allocations Other General as both the debit and credit for this entry (not true of clinical allocations) .If not budgeted, budget entry must accompany allocation entry .Must be included in Budget   See full guidelines at Main Unrestricted Accounting website http://www.unm.edu/~gacctng/Allocation%20JV%20Instructions.html   11/3/2011 81     8045 Guidelines .Used to record small, unbudgeted “transfers” between indexes in different Banner Programs, or different Campuses .Can cross fund level 2 and program level 2 .Allowed to correct prior fiscal year transactions .Cannot exceed $5,000 per transaction .Cannot exceed $20,000 per index per fiscal year .Must be used on debit and credit sides; net = zero .Must be used alone in JV; no other account codes allowed See guideline at Main Unrestricted Accounting website http://www.unm.edu/~gacctng/AC8045.html 11/3/2011 82       Transfers .A Transfer moves revenue between Campuses or Banner .Allows movement of funding from one Banner Fund Level 2 or Program Level 2 to another .A transfer entry is used when an allocation entry is not allowed .Requires both actual and budget entries .Use Hyperion report - Forh008 HSC transfers allocation .Transfer entries are approved by the Budget Office. See guideline at Main Unrestricted Accounting website http://www.unm.edu/~gacctng/transfer.html 11/3/2011 83     11/3/2011 84 . . . . . . Transfer or Allocation Decision Tree START HERE Run F Index Lookup  Hyperion Report.  Note  the Fund and Program  Level  Data for indices.  Do you know the Fund and  Program Codes For both indices? ALLOCATION Are both fund Codes in the same Level 2 fund? TRANSFER Is the program Code the same For both indices? Are the level 2 program codes within  instruction &  General? TRANSFER ALLOCATION           No Yes Yes Yes No No Yes No     11/3/2011 85 I&G Funds(3U0044): P09,P10, P11,P12, P13, P14  Treat all these as THE SAME CODE  ALLOCATE between I&G Program level 2 codes   All other funds: P15,P16,P17, P18,P19,P20,P21,P22,P50,P501, P502, P503, P504  Treat each of these as a DIFFERENT CODE  TRANSFER between any of these codes, or one of these codes and an I&G code   Allocation/Transfer Aide Program Level 2 Codes Report Name  Type  Description  Location   FORH008 (HSC)     FBRH0Z01 (Main/Branches-  Hyperion     Hyperion  Provides a report that will show what type of allocation/transfer entry to use, and what to debit/credit  Brio/Finance Reports/ F Dept_School_College   Brio/Finance Reports/Finance Rroduction Reports   F Index Lookup Report  Hyperion  Allows one to determine fund and program codes for any index  Brio/Finance Reports/Finance Production Reports/F Index Lookup   Useful Tools       11/3/2011 86 Sample Report – HSC Transfer       Sample Report – Main Transfer 11/3/2011 87       11/3/2011 88 Other JV Tips .Don’t use the word “allocate” in a transfer entry; use the word “transfer” .Don’t use the word “transfer” in an allocation entry; use the word “allocate” .Item text that contradicts the type of Journal Voucher you are making .Item text that does not identify where the funds originally came from  See Fiscal Aid Kits called Required Journal Entry Information  http://hsc.unm.edu/financialservices/accounting/fiscalaidkit.shtml       VI. Checking GUAMESG in Banner The following are examples of Banner messages (GUAMESG) used when disapproving prior fiscal year JVs: .9-JV denied. Prior year, but crosses level 2 funds, and more than $5,000. Will have to use rule classes JET & BDT. Contact Theresa at SOM Dean's Office. John 5-4567 .9-DOCUMENT IS DISAPPROVED Prior year transaction-crosses level 2 funds; use acct code 8045 for debit & credit. thanks, Sandy 2-2080 .9-DOCUMENT IS DISAPPROVED. Prior year transaction-acct code change within same index not permitted, will roll fwd as 1900. Do not resubmit JV. thx, Sandy 2-2080 .9. DOCUMENT IS DISAPPROVED. Prior year transaction.  Must use 1903 on both sides (CR) & (DR). Thanks, Alana 2-3628 .9-DOCUMENT IS DISAPPROVED Prior year transaction; use acct code 1903 for debit & credit. thanks, Alana 2-2080    11/3/2011 89       Checking GUAMESG in Banner 11/3/2011 90       Checking GUAMESG in Banner 11/3/2011 91 Click pencil to read full message       11/3/2011 92 .Questions?    

Understanding Positions in Banner and UNM Jobs

Presenter: Joyce McCarthy, Sidney Mason-Coon
Date: 06-15-2010

Presentation - PDF

    LEARNJune 15 & 16, 2010 UNM Logo Color- HR     Understanding Positions in Banner and UNMJobs Joyce McCarthy Program Operations Director HR Process Improvements Sidney Mason-Coon Position Control Specialist Position Control       Agenda .What is a position? .Why are positions important? .What is the difference between position management/position control? .How to manage your positions? .How to use positions in UNMJobs?         What is a Position? .“A position is a box on your Org Chart” –It is important for departments to develop an org chart to effectively manage their departments .There are two types of positions –Single Positions –Pooled Positions         Single Positions .Usually represent a single classification .Budgeted individually .Examples of single positions include: Program Manager, Full Time Faculty, and an Administrative Assistant 2       Pooled Positions .Represent a larger box on the Org Chart that could contain many individuals .Budgeted as a pool by type of employment .Examples of pooled positions include: TPTs, On-Call Staff, Student Employees and UNMTemps       Why is a Position Important? Position is used in Budget, Finance, HR, Payroll and Security –Budgeting .Position Budgeting .Salary Planner –Posting of Jobs (UNMJobs) .Includes duties specific to the position in your department .Preferred qualifications and applicant questions           Why is a Position Important? Position is used in Budget, Finance, HR, Payroll and Security –Setup of Jobs (Banner) .Accurate set up of salary, position class, e-Class,   salary table, grade –Security .Org on position drives Salary Planner .Org on job drives time entry, most other security for HR/PR           Why is a Position Important? The key to position management and position control is the ability to accurately select  the appropriate position before you begin any type of action.       Position vs. Job Position •Position # •Org Code •Position Classification •Position Budget •Eclass •Grade •Labor Distribution •FTE   Job•Position # •Org Code •Employee •Banner ID •Salary on Job •Org Code •Labor Distribution •Appointment % •Suffix         Positions in UNMJobs .Combination of data in Banner Position and Job .Includes custom summary, preferred qualifications, applicant questions .Provides data from the position, the job and the postings built from this information to allow you to easily post the position in the future         How do I find my Positions? .First, look in UNMJobs .E-Print –HR/PR Repository –Active Employee Report: PZROEMA   –Position Vacancy Report: PZRVACR   These are found in the HRP_BANPRepository       Differences between Position Management and Position Control .Position controlis concerned with budgeting of positions. .Position managementis concerned with all other data related to positions. .Such as: .Position Classification –correct minimum requirements, org codes, salary grades, e-classes           Basic Premise of Position Management .Keeping the classification information accurate –Reclassifications –Career Ladders   .Managing your vacancies –Canceling positions if they are never going to be filled –Knowing when to create a new position .Is it an additional FTE? .Do I have a vacant position that is not going to filled and can be reclassified for this posting?           Basic Premise of Position Control .Departments should not hire more individuals than they have funding for .Number of budgeted FTEs should equal the number of positions in your organization         Basic Premise of Position Control .The Org code on your position and on your employees job should match .Vacant positions that departments do not have budget for should be deactivated or reclassed to titles that you have budget for .Departments should use reports to identify what positions are in your org(s)         Managing Positions in UNMJobs .Position data in UNMJobs is a result of what was loaded as of Nov 2008 and what departments have modified/added since. .How do I decide how to proceed in UNMJobs when posting a position.         Managing your positions in UNMJobs .Not all positions show in UNMJobs but if you have a position in Banner (PZROEMA or PZROVACR) that is not in UNMJobs –you should chose the Action: “Create a new position and request to Post ” Be sure to reference your position number that is in Banner but not in UNMJobs.       Managing your positions in UNMJobs .If you have a vacant position or a position that is soon to be vacated and it is the right classification, use that position. .If you do not have a vacant or soon to be vacated position in the right classification, but you have a position that you do not intend to fill, use that position and reclass it. .UNMJobs Action: “Modify an existing position and request to Post ”       PPT18.png       PPT6D5.png PPT6D4.png Scroll down         PPT6DB.png     PPT23.png       PPT2A.png       Future State .Project in progress to synchronize the position data in Banner and UNMJobs. .Already synchronized the ORGs  between the jobs and the positions. .Working on moving IB/PC from the hiring proposal into the posting. .Researching the ability to move all transactions through the systems electronically.         Questions? .Contact Position Control at: POSCNTRL@unm.edu .Joyce McCarthy: 277-0988, JMcCarthy@salud.unm.edu    

Working With Reserves and Balance Forwards

Presenter: Terry Shoebotham
Date: 07-13-2009

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   Working With Changes in Reserves (account 1903) on Unrestricted Indices Presented by Terry Shoebotham 7/13 & 29/09 Revised 10/2011 prepared by Terry Shoebotham Business Management Specialist TABLE OF CONTENTS RESERVES ....................................................................................................................................................................3 ACCOUNT 1900 -RESERVES-WHAT IS IT?................................................................................................................................. 3 WHY IT CHANGES THE WAY YOU MOVE EXPENSES AT YEAR END ..................................................................................................... 3 HOW YOU DECIDE IF YOU NEED A CORRECTING ENTRY...............................................................................................4 ACCOUNT 1903 -CHANGE IN RESERVES ENTRY: ....................................................................................................................... 4 UNDERSTANDING FUND STRUCTURE ........................................................................................................................................ 5 UNDERSTANDING PROGRAM STRUCTURE .................................................................................................................................. 6 Instructional and General Exception.......................................................................................................................... 6 8045 ENTRIES .................................................................................................................................................................... 7 NO ENTRY REQUIRED ............................................................................................................................................................ 7 MAKING A CHANGE WITH A RESERVES ENTRY ............................................................................................................................ 7 example ..................................................................................................................................................................... 8 MAKING A CHANGE WITH AN 8045 ENTRY................................................................................................................................ 9 example ..................................................................................................................................................................... 9 When you need preapproval...................................................................................................................................... 9 WHAT ABOUT RESTRICTED INDEX CORRECTIONS? ....................................................................................................................... 9 COMMON JOURNAL VOUCHER MISTAKES TO AVOID:...............................................................................................10 OTHER TYPES OF RESERVES ENTRIES .........................................................................................................................10 COVERING A DEFICIT IN ANOTHER INDEX..................................................................................................................... 10 example ................................................................................................................................................................... 10 CLOSING AN INDEX....................................................................................................................................................... 11 ACCOUNT 1901 – BUDGETED USE OF RESERVES ENTRY:............................................................................................11 RELATED BUDGET ENTRIES REMINDERS:................................................................................................................................ 11 BUDGET ENTRY GENERAL TIPS: .................................................................................................................................... 11 YOU MAKE THE CALL .................................................................................................................................................13 APPENDIX 1-RESERVES ACCOUNT CODES .................................................................................................................17 APPENDIX 2-HSC UNRESTRICTED FUND STRUCTURE.................................................................................................17 APPENDIX 3-MAIN CAMPUS UNRESTRICTED FUND STRUCTURE................................................................................22 APPENDIX 4-FOAPAL ELEMENTS-QUICK REFERENCE GUIDE......................................................................................33 APPENDIX 5-YOU MAKE THE CALL ANSWERS............................................................................................................34 APPENDIX 6 – OTHER RESOURCES .............................................................................................................................35 RESERVES Throughout the fiscal year, departments have revenue and expenses posted to their various unrestricted indices. When indices are reconciled, any incorrectly posted expense is moved from the incorrect index to the correct index.  Then both indices have expenses correctly posted. Expenses from the prior fiscal year, however, do not work this way. Departments struggle, especially at the beginning of a new fiscal year, to properly correct expense entries that were incorrectly posted in the prior fiscal year. An explanation of why departments cannot move incorrectly posted unrestricted expenses directly to the correct index follows.  You do not have to understand this explanation. You do have to understand the correct way to move unrestricted prior year expenses that posted incorrectly. The rest of this Manual will explain the correct way to move improperly posted prior year unrestricted expenses. ACCOUNT 1900 -RESERVES-WHAT IS IT? For unrestricted indices, the remaining amount left [i.e., funds left to spend] or the cash deficit [i.e., funds you spent but did not have] at fiscal year end is rolled forward in the accounting system into the new fiscal year. It is like the starting balance in your checkbook. Roll forwards are posted to account code 1900 and are referred to as reserves. Journal entries cannot be done using account code 1900.  Reserves represent actual dollars, not budget. The Year-End Roll Process uses the JBF Rule Class Code to post the reserves to account 1900. WHY IT CHANGES THE WAY YOU MOVE EXPENSES AT YEAR END Think about your check book. When you deposit a check, the money you have to spend increases. When you write a check, the balance gets smaller. At month end your bank takes all your deposits and adds them to your balance, and all your expenses and subtracts them from your balance. The new amount is your beginning balance. NĻŃƋ ĸıŀ’Ŀ ĿĭŅ ŅĻŁ ľıĭĸĵņıİ ĭIJŀıľ ŀĴı ĹĻĺŀĴ ıĺİıİ ĭĺİ ŀĴı Įĭĺķ Ĵĭİ İıŀıľĹĵĺıİ ŅĻŁľ ĺıŃ beginning balance, the bank has posted to your account a check for $100 that someone else wrote. They could move that check to the correct account, charging them the $100.  They could add the $100 back to your account, and your account balance would get larger. You would then both have the right balance showing after the correction. WĴŅ įĭĺ’ŀ UNM ĸıŀ ŅĻŁ İĻ ŀĴı ĿĭĹı ŀĴĵĺij? At year end UNM must accurately state expenses for each year, for each area. In the above example, once year end closes at UNM, your expenses have been overstated by $100.  The person (ŀĴĵĺķ “ĵĺİıń”) ŃĴĻ “ŃľĻŀı ŀĴı įĴıįķ” ĭĺİ ŃĭĿ ĺĻŀ įĴĭľijıİƋ ĴĭĿ a $100 understatement reported. This will stay that way. The net effect is zero to UNM.  Nonetheless, it is a $100 misstatement for each index. But if the expense was moved from index to index using the expense account, the misstatement would be duplicated in the new yearƎ YĻŁ ŃĻŁĸİ ĺĻŃ Ĵĭłı ĭ ĿŁĮŀľĭįŀĵĻĺ IJľĻĹ ŀĴĵĿ Ņıĭľ’Ŀ ıńļıĺĿıĿ ŀĴĭŀ ŅĻŁ should not have this year, and the person (ŀĴĵĺķ “ĵĺİıń”) who “ŃľĻŀı ŀĴı įĴıįķ” ĸĭĿŀ Ņıĭľ ŃĻŁĸİ Ĵĭłı $100 ĻIJ ıńļıĺĿıĿ ŀĴĵĿ Ņıĭľ ŀĴĭŀ ĵĿ ĺĻŀ ŀĴĵĿ Ņıĭľ’Ŀ ıńļıĺĿıƎ TĴĵĿ įĻŁĸİ ļŁŀ indices over (or under) budget in the new year, when they really are within budget. This could mislead managers as to what was spent this year. When departments correct prior year misstatements, they do not want to create current year misstatements. Current year unrestricted expenses are represented correctly when prior year misstatements are corrected using entries that adjust only ŀĴı “Įıijĵĺĺĵĺij Įĭĸĭĺįı” (or Reserves) of ŅĻŁľ “įĴıįķĮĻĻķ”Ƌ ľĭŀĴıľ ŀĴĭĺ ŀĴı ıńļıĺĿıĿƎ WĴıĺıłıľ ŅĻŁ ĺııİ ŀĻ ĭİĶŁĿŀ ĭ ļľĵĻľ Ņıĭľ unrestricted misstatement, you need to adjust it with a Reserves entry. Notice that we are not talking about contracts and grants. HOW YOU DECIDE IF YOU NEED A CORRECTING ENTRY When you reconcile your indices for June you may find some misstatementsƎ  Lıŀ’Ŀ ĭĿĿŁĹı ŅĻŁ IJĵĺİ ŀĴı following: 1)  $500 charged to office supplies expense last year should have been charged to travel. The index was correct. 2)  $200 charged to office supplies expense should have been charged to computer expense for a different index. Do you need to correct both misstatements? Answer: No. Think of the checkbook again. If you wrote a check for $500 that was for an expense that was yours, it would NOT AFFECT YOUR BEGINNING BALANCE for the next month. Correspondingly, if you have a prior year expense that was not charged to the correct account, but IS IN THE CORRECT INDEX, it does not affect your beginning balance for the new year. If it did not affect the beginning balance in the new year, no entry is allowed. What about the second misstatement? Yes, this misstatement needs to be corrected. You will probably use a change in Reserves entry. ACCOUNT 1903 -CHANGE IN RESERVES ENTRY: The most common entry made to Reserves accounts involves a movement of balance from one index to another to cover a deficit in the index or to fund an index. Another common reason for a Reserves entry is to close an index that has a balance but has had no activity in the current year; the only account with a balance is 1900 in this instance. Another reason for Reserves entries is to correct prior year entries. When an misstatement is found in an unrestricted index after the accounting records have been closed for the fiscal year and the misstatement only affects unrestricted indices, a change in Reserves entry is the method to correct the misstatement. These entries use account 1903 on both sides of the entry. The indices involved must be in the same Fund level 2 and Program level 2. If the indices do not belong to the same Fund level 2 and Program level 2, a transfer entry is generally required. Review Transfer entries in the Journal Voucher Guidelines for Allocation, Transfer, and Reserves Entries LEARN from 7/14/08, posted at http://hsc.unm.edu/financialservices/accounting/learn.shtml for guidance on these entries.  The same principles apply: you do not use expense accounts. UNDERSTANDING FUND STRUCTURE In order to determine which accounts to use when making a correcting entry, you must know which level 2 Fund each index is in. If the indices are in the same level 2 fund, you may be able to use a Change in Reserves Entry. If the indices are not in the same Level 2 fund, you cannot use a Change in Reserves entry. Appendices 2 and 3 show the structure for Main Campus and HSC. Notice that the first digit of the Fund number indicates the campus. Branches have a beginning number other than 2 (Main Campus) or 3 (HSC). Notice that for Level 2 funds to be in the same fund, they must have the same basic purpose. Instructional and General funds are grouped together, Research is grouped together, as are Education, Clinical Service, Public Service, Other Instructional Services, Internal Services, and other areas. You can use the appendix to determine the level 2 fund by first finding the level 3 fund for an index from Banner form FTMACCI. Funds 2U0005 and 2U0237 are in Level 2 fund 2U2G, below. If their programs are the same, a Change in Reserves entry can be done. Funds 2U0224 and 2U0237 are in different Level 2 funds. A change in Reserves entry cannot be done. If the misstatement amount is small (<$5,000), an 8045 entry can usually be done to correct prior year misstatements between indices in different Level 2 funds. Section of Appendix 3-Main Campus Fund Structure 2U1G MU General I & G 2U0224 MU I & G 2U2 MU Research 2U2G MU General Research 2U0005 MU Department Research 2U0006 MU Idc 2U0237 MU IDC Recovery for Special Program You can view the most current version of this report in ePrint, Repository fin_banp-Finance Banner Production (banp).  The report name is FGRFNDH-Fund Hierarchy Report. UNDERSTANDING PROGRAM STRUCTURE Generally, Appendix 4 will be sufficient to help you determine whether or not indices are in the same Program Level 2. In order to do a Change in Reserves entry, in addition to both indices having the same Fund level 2, they must also have the same Program Level 2.  When you look ŀĴı ĵĺİıń’ O!P! Ļĺ FTMACCI, you will see the program level 3 fund, not the level 2 fund.  _N_R!LLY (ŀĴıľı ĭľı ĿĻĹı ıńįıļŀĵĻĺĿǥ) the Level 3 program will begin with the same first two digits as the Level 2 Program code. If you are not sure, you can look up the program code in the Program Hierarchy Report and determine the Level 2 code from this. You can also use FTIPRGH. Look at the Program Hierarchy Report, below. If the Program codes you find in FTMACCI for two indices are P221 and P23, they are in the same level 2 program code, P22. If the program codes are P221 and P151, they are in different Level 2 program codes and a Change in Reserves entry cannot be made. INSTRUCTIONAL AND GENERAL EXCEPTION One major exception to this Level 2 program coding exists. Note in Appendix 4 that ALL Instructional and General Level 2 program codes are considered to be in the same Level 2 program code. This means that any Instructional and General funds in the same Level 3 Fund code can have misstatements corrected with a Change in Reserves entry. Sample page of ePrint Report, Program Hierarchy Report Level   You may view the most current version of this ePrint report in repository fin_banp-Finance Banner-Production (banp).  The name of the report is FGRPRGH. 8045 ENTRIES If a small (<$5,000) correcting entry is required, and the two unrestricted indices involved do not belong to the same Fund level 2 and/or Program level 2, account 8045 can be used. This entry will avoid the use of a more complicated transfer entry. 8045 is used for both the debit and credit side of the entry.  The entry must net to zero. 8045 entries are evaluated using the following criteria: •  Line items affecting any other account codes may not be used in a JV in which account code 8045 is used. •  There is a limit of $5,000 per transaction, and $20,000 per year, per index. This means the document transaction total cannot exceed $10,000, $5,000 for the Debit and $5,000 for the credit. • Any exceptions to these limits must be approved by Financial Services before an entry is submitted. • Salaries cannot be moved using account code 8045. [Use PZAREDS to do labor redistributions.] • No budgets are allowed for this account. • Account code 8045 cannot be used with restricted indices. • There must be a detailed description of the type of expense being billed. NO ENTRY REQUIRED If a misstatement is between account codes within the same index, no entry is required. Reserves entries increase (or reduce) the prior year end remaining balance in the affected indices.  They do not affect the expense accounts where the entries originally occurred. Reserves entries must be well documented so the original entry being corrected can be identified.  MAKING A CHANGE WITH A RESERVES ENTRY 1)  Determine this is the correct entry: a. The misstatement involves a prior year unrestricted expense misstatement. (Or you are moving the Reserves for another reason.) b. Check to make sure you have a balance to move. c. All involved indices have the same level 2 Fund d. All involved indices have the same level 2 Program You can determine the level 2 Fund and Program by using appendices 2 through 4. You can determine the Level 2 Program by using appendix 4 or ePrint report Program Hierarchy Report, or Banner form FTIPRGH. EXAMPLE $200 was charged to office supplies expense in index 123456 that should have been charged to computer expense in index 654321. Both indices have the same Level 2 Fund and same Level 2 Program. Sufficient Reserves exist in index 654321, account 1900. The change in Reserves entry would look like this: Decrease the “expense” in index 123456, because that expense should not have been charged to this index. The decrease in expense from the prior year translates to an INCREASE in the revenue account , which means you credit the 1903 Change in Reserves account. Increase the “expense” in index 654321, because they should have paid the expense last year. The increase in expense from the prior year translates to a DECREASE in the revenue account (they already spent it last year.), which means you debit the 1903 Change in Reserves account. Easier Way to think about it: If you need to increase the “expense” in an index, debit 1903. To decrease the “expense”, credit 1903. The index you are debiting must have sufficient Reserves to remove. Notice that you do not use any expense accounts for this entry. 1903 is a revenue account. Actual: This entry is balanced.  The 1903 entries net to zero. This is a requirement for all 1903 entries. MAKING A CHANGE WITH AN 8045 ENTRY Sometimes a correcting entry needs to be made, but the index that needs to receive the expense does not have enough Reserves to cover the expense.  What then? When an unrestricted index needs to have a prior year expense moved into the index, and there is insufficient Reserves, you will generally use expense account code 8045-Interdepartmental Support. You will NOT use any other expense account. This account can be used whether the fund level 2 codes and program level 2 codes are the same or not. EXAMPLE $200 was charged to office supplies expense in index 123456 that should have been charged to computer expense in index 654321. Sufficient Reserves do not exist in index 654321, account 1900. Both indices may or may not have the same Level 2 Fund and same Level 2 Program. The correcting entry would look like this: Decrease the “expense” in index 123456, because that expense should not have been charged to this index. Decrease the expense from the prior year by crediting 8045-Interdepartmental Support account. This is an expense account.  Do not use any other expense account. Increase the “expense” in index 654321, because they should have paid the expense last year. Increase in expense from the prior year by debiting 8045-Interdepartmental Support account. Do not use any other expense account. This entry is balanced. The 8045 entries net to zero. This is a requirement for all 8045 entries. 8045 entries can be used when the fund and/or program levels are NOT in the same level 2 fund and/or program. WHEN YOU NEED PREAPPROVAL You do not need prior approval to correct prior year misstatements with a Change in Reserves entry. Departments in the School of Medicine must obtain prior approval for any other type of Reserves entries IJľĻĹ ŀĴı SOM’Ŀ _ıĭĺ’Ŀ ĻIJIJĵįıƎ  WHAT ABOUT RESTRICTED INDEX CORRECTIONS? With restricted indices, you continue to move misstatements using expense accounts. Maintaining accurate cumulative restricted expense totals in the correct accounts is of overriding importance.  Restricted indices do not have a 1900 Reserves account, and no entries are ever made to a 1903 Change in Reserves account for a restricted index. If a restricted index is involved, even if the other index is unrestricted, use the correct expense accounts in both indices to correct the misstatement. COMMON JOURNAL VOUCHER MISTAKES TO AVOID: • Creating a Reserves entry that crosses level 2 funds or level 2 programs. • Trying to move unrestricted prior year correcting entries in their original account code. These must be moved in the Reserves account code [1903] as a debit and credit to the indices involved. • Debits do not equal credits. • Submitting Reserves entry in lieu of moving current year expense to the appropriate index. • TĴı ĵĺİıń ĭĺİ ĭįįĻŁĺŀ įĻİı IJŁĺİĿ ĭľı Įıĵĺij ĹĻłıİ “IJľĻĹ” İĻıĿ ĺĻŀ Ĵĭłı ĿŁIJIJĵįĵıĺŀ IJŁĺİĿ ĵĺ 1900. A negative balance CANNOT result. OTHER TYPES OF RESERVES ENTRIES Reserves entries are used for moving balances around, so spending can occur in other indices.  Reserves can also be used to empty an index so it can be closed. COVERING A DEFICIT IN ANOTHER INDEX If an index has negative Reserves, that means the index had more expenses than revenue for the prior year. To correct this situation, you may be asked to move Reserves from a healthier index into this index to eliminate the negative Reserves condition. EXAMPLE At year end, index 123456 had Reserves of $8,000. This means Index 123456 had $8,000 of funds left at year end, after subtracting all expenses. Index 654321, on the other hand, had negative Reserves of $1,000. You have been told to use some of the funds in123456 to bring the negative Reserves up to zero. Index 654321 does not have a budget. Index 123456 has a balanced budget of $20,000. None of the Reserves money is budgeted in 654321. You do not need to do any budget entry.  Assuming both indices are in the same level 2 fund and level 2 program, the entry would be: Index Rule Account (Dr) (Cr) Class Code Code 123456 JE2 1903 1,000 654321 JE2 1903 1,000 Had the Reserves money being moved been budgeted in 654321, the budgeted amount would have to be reduced, both in 1901 and in an expense area. CLOSING AN INDEX As shown above, if you are terminating an index that only has a negative 1900 Reserves amount ( and no expenses), you remove the Reserves with a 1903 change in reserves entry. If the index to be closed has a negative Reserves, you will credit that index, using account 1903, for the exact amount in the negative 1900 Reserves account amount. You will debit another index in the same level 2 fund and same program for that amount. If the index to be terminated has a positive Reserves amount, you will also remove the positive Reserves with a 1903 Reserves entry. You will debit that index, using account 1903, for the exact amount in the 1900 Reserves account. You will credit another index in the same level 2 fund and same program for that amount. This entry will leave you with a net balance of zero in the index to be terminated, and you can then submit the index for termination. Remember to include in your journal voucher text an explanation of why you are making the entry; to terminate an unneeded index. ACCOUNT 1901 – BUDGETED USE OF RESERVES ENTRY: Main Campus and Health Sciences Center worked together to develop a 1901 Budget Reserves Standard Operating Procedure (SOP) which explains the processing guidelines and gives examples of the BD4 entries. There are slight requirement differences between campuses. Each area should work with the Budget Office (Main Campus or HSC) on their specific budget questions and refer to the SOP located on the Main Campus web site http://www.unm.edu/~budget/sop/ . RELATED BUDGET ENTRIES REMINDERS: • You must have the actual money to move it. You cannot move more with a 1903 entry than remains in 1900.  Ever. • Funding to be moved must be budgeted.  (This does not apply to misstatement correction.) • Prepare needed budget entries at the same time as the actual entry is made. You may use the same JV for both the budget and the actual entries. • To budget Reserves usage, account code 1901 must be used. • Remember that expense account 8060 is a default; use the correct expense account. (Account where the money will be spent now, and for the giving index, account where the expense had originally been budgeted.) • Account codes 1900 or 1903 cannot be used in budget entries. BUDGET ENTRY GENERAL TIPS: • Budget entries must be in whole dollars.  No cents. 11 • The ĵĺİıń “ijĵłĵĺij” ŀĴı IJŁĺİĿ [ŀĴĵĿ ıĺŀľŅ ĵĿ ļŁŀ ĵĺŀĻ ŀĴı JĻŁľĺĭĸ ıĺŀľŅ ŃĵŀĴ ĭ ĺıijĭŀĵłı Ŀĵijĺƌ ŀĴı budget is going down for these accounts] must have enough money to cover the entry. [i.e., if the current budget is $9,000, and actual expenses are $500 and there is a $1,500 encumbrance, there is only $7,000 left ($9,000-$500-$1,500=$7,000) and only $7,000 may be moved]. • REMEMBER: If you move funding out of (or into) an index, you must also move the same amount of expense out of (or into) the index.  The budget must stay in balance.  • In the case of Reserves amounts, use account code 1901 and rule class BD4 to move funding from one index to another. If you wish to spend unbudgeted Reserves money that is sitting in 1900, you must budget the use of funding in account code1901. Refer to your Hyperion report for how much use of Reserves is currently budgeted. • YOU MAKE THE CALL 1) While reconciling the June activity for restricted index 443123, you find a $500 charge that does not belong in the index. Instead, it belongs in unrestricted index 543123. The account code charged was 3100, and the purchase was for a printer. The unrestricted index has $4,550 in Reserves actual account 1900. a. I will use Reserves account 1900 to credit index 443123. I will debit Reserves account 1900, index 543123, moving the expense. b. I will use Change in Reserves account 1903 to credit index 443123 and debit Change in Reserves account 1903, index 543123 Index Account Debit Credit 543123 1903 $500.00 443123 1903 $500.00 c. This includes a restricted index, so I will move the printer expense from 443123 by crediting account 3100-Office Supplies General, and move it to the unrestricted index 543123 by debiting account 1903-Change in Reserves. Index Account Debit Credit 543123 1903 $500.00 443123 3100 $500.00 d. This includes a restricted index, so I will move the printer expense from 443123 by crediting account 3100-Office Supplies General, and debiting account 3150-Computer Supplies <$5,000 in index 543123. Index Account Debit Credit 543123 3150 $500.00 443123 3100 $500.00 2) While reconciling the June activity for unrestricted index 333123, you find a $500 charge that does not belong in the index. Instead, it belongs in unrestricted index 543123. The account code charged was 3100-Office Supplies General, and the purchase was for paper for the copier. Both unrestricted indices have $4,550 each in Reserves account 1900. Both indices are in the same level 2 fund and the same level 2 program. a. I will use Change in Reserves account 1903 to credit index 543123 and debit Change in Reserves account 1903, index 333123 b. Since the Change in Reserves account 1903 is a revenue account, I will debit index 543123 to remove the excess revenue that rolled forward due to the missing expense amount, and credit Change in Reserves account 1903, index 333123 to increase their roll forward revenue. Index Account Debit Credit 543123 1903 $500.00 333123 1903 $500.00 3) While reconciling the July activity for unrestricted index 333123, you find a $500 July charge that does not belong in the index. Instead, it belongs in unrestricted index 543123. The account code charged was 3100, and the purchase was for paper for the copier. Both unrestricted indices have $4,550 each in Reserves account 1900. a. Since the Change in Reserves account 1903 is a revenue account, I will debit index 543123 to remove the excess revenue that rolled forward due to the missing expense amount, and credit Change in Reserves account 1903, index 333123 to increase their roll forward revenue. Index Account Debit Credit 543123 1903 $500.00 333123 1903 $500.00 b. Since this is not a prior year correction, I will debit account 3100 in index 543123, and credit account 3100 to remove the expense in index 333123 Index Account Debit Credit 543123 3100 $500.00 333123 3100 $500.00 4) While reconciling the June activity for unrestricted index 333123, you find a $1,500 charge that does not belong in the index. Instead, it belongs in unrestricted index 543123. The account code correctly charged was 2020-Payroll.  a. Since the Change in Reserves account 1903 is a revenue account, I will debit index 543123 to remove the excess revenue that rolled forward due to the missing expense amount, and credit Change in Reserves account 1903, index 333123 to increase their roll forward revenue. b. Since this is a salary account, I will do a PZAREDS to move the salary to index 543123.  I will also check the Hyperion Finance report FSH0002 Labor Distribution for the employee, to make sure the distribution is now correct. c. I will process a Labor Redistribution form to move the salary for this employee. 5) While reconciling the June activity for unrestricted index 333123, you find an $800 charge that does not belong in the index. Instead, it belongs in unrestricted index 543123. The account code correctly charged was 3100-Office Expense General. Index 333123 has no Balance in account 1900-Reserves, and index 543123 has a negative $5,000 balance in account 1900¬Reserves.  The indices are both in the same fund level 2 and the same program. a. Since the Change in Reserves account 1903 is a revenue account, I will debit index 543123 to remove the excess revenue that rolled forward due to the missing expense amount, and credit Change in Reserves account 1903, index 333123 to increase their roll forward revenue. Index Account Debit Credit 543123 1903 $800.00 333123 1903 $800.00 b. I will debit index 543123 expense account 3100-Office Expense General to move the misstated expense amount to this index, and credit account 3100-Office Expense General, index 333123 to decrease their expense by this same amount. Index Account Debit Credit 543123 3100 $800.00 333123 3100 $800.00 c. Since the Reserves account 1900 has no positive balance, I will debit index 543123, account 8045-Interdepartmental Support to move the misstated expense amount to this index, and credit 8045-Interdepartmental Support, index 333123 to decrease their expense by this same amount. 15 APPENDIX 1-RESERVES ACCOUNT CODES Account Code Title Description APPENDIX 2-HSC UNRESTRICTED FUND STRUCTURE 3U56 HU General Clinical Service 3U54 HU Internal Services   APPENDIX 3-MAIN CAMPUS UNRESTRICTED FUND STRUCTURE You may see the most up to date version of this report in ePrint, Repository fin_banp-Finance Banner Production (banp).  The report name is FGRFNDH-Fund Hierarchy Report. UPDATED 07/1/08 2U0206 MU Summer Professional Development 2U0108 MU Maxwell San Felipe 2U54 Internal Services 2U0113 MU Microprobe Sem Lab 2U0114 MU ECRF OTV Cost Center 2U0115 MU Mathematics & Statistics 2U0116 MU Mathematics & Statistics Kyner 2U0117 MU Stat Consulting Clinic 2U0118 MU Physics Shops 2U0119 MU Media Tech Service 2U0120 MU SIMS Laboratory 2U0121 MU Ce Shop Account 2U0122 MU Ce Hydraulics Lab Fee 2U0150 MU Xrd Lab   2U0232 MU Special Program Services Level 2 2U0233 MU Banner Tax 2U0236 MU Catastrophic Leave 2U0239 MU LIDAR Lab 2U0240 MU PPD Maintenance and Planning 2U0241 MU PPD Environmental Services 2U0242 MU PPD Work Control Level 3 2U0243 MU Employee and Org Development 2U0244 MU Univ Library Internal Svcs 2U0245 MU Continuing Education 2U0246 MU Confocal Laser Scanning Lab 2U0249 ITS Computing Services 2U0250 ITS Communications Network Services 2U0253 Capital Projects Ofc 2U0254 COE Publication Center 2U0255 MU-Benefits 2U0256 CHTM-Technical Support 2U0258 A&S Biology Service Centers 2U0260 EDAC Internal Services 2U0262 MU NMIRA Laboratories 2U5G MU General Student Aid 2U0008 MU Endowed Spending 2U0226 MU Student Aid 2U0261 Tribal Student Aid 2U55 MU Other 2U0009 MU Masters Of Management 2U0010 MU Santa Fe Graduate Center 2U0011 MU Accepted Applicants   APPENDIX 4-FOAPAL ELEMENTS-QUICK REFERENCE GUIDE   Treat as ONE Program Level 2 Fund. PROGRAM DESCRIPTION Level 2 ACCOUNT CODES Instruction and General OPERATING REVENUE Begins With Instructional and General Revenue P09 Tuition Revenue 01 Instruction Unrestricted Ex 10 P10 Student Fees 02 Sponsored Instr Restr Ex 10 P10R Mandatory Student Fees 02Z1 Academic Support Unrestr Ex 11 P11 Patient Services 03 Sponsored Acad Support Restr Ex 11 P11R Grants & Contracts 04 Student Services Ex 12 P12 Sales & Services 05 Sponsored Student Srvc Restr Ex 12 P12R INTERNAL SALES Institutional Support Ex 13 P13 (USED ONLY IN P18 INTERNAL SERVICES) Sponsored Inst Support Restr Ex 13 P13R Appropriations 07(number) Operations and Maintenance Ex 14 P14 Sales & Services 07Z Other Operating Revenue 08 Student Social and Cultural Ex 15 P15 NON-OPERATING REVENUE Bond Revenue 09 Research Unrestr Ex 16 P16 Gifts, Investment Income & Sponsored Research Restr Ex 16 P16R Other 10 Transfers 11 or 12 Non Sponsored Pub Svc Unrestr Ex 17 P17 Allocations Sponsor Public Service Restr Ex 17 P17R Earned Revenue 1600 F&A Allocation 1601 Internal Services Ex 18 P18 (USED ONLY IN P16 Research) Allocations SOM Gen 1610 Student Aid Unrestr Ex 19 P19 Pooled Allocation 1640 Sponsored Student Aid Restr Ex 19 P19R (Only used by depts. For original budget) UNM Bond Proceeds 1650 Auxiliaries Ex 20 P20 General Allocations 1660 Overhead Internal 1661 Athletics Ex 21 P21 (USED ONLY IN P16 Research) Rıijıĺŀ’Ŀ RıĭĸĸĻįĭŀĵĻĺ 1665 Independent Operations Ex 22 P22 Reserves Reserves 1900 Other Institutional Programs P50 (NOT USED by Depts EVER) Property Plant and Equipment P501 Budget Bal Change 1901 Agencies P502 (BUDGET PURPOSES ONLY) Student Loan Programs P503 Change in Reserves 1903 Endowment Programs P504 (MOVING BAL FWD ACTUALS ONLY) EXPENSES Salaries 20 Payroll Benefits 21 Other Expenses 31 thru 99 Interdept Support 8045 Budget Contingency 80E0 APPENDIX 5-YOU MAKE THE CALL ANSWERS 1) The correct answer is D a. This answer is incorrect because Reserves account 1900 is used only at year end by Finance Systems Management to roll balances forward. Unrestricted correcting entries are done in 1903¬Change in Reserves. This answer is also incorrect because any correcting entry involving a restricted index is done using the actual expense accounts for the entry, not a Reserves entry. b. This answer is incorrect because any correcting entry involving a restricted index is done using the actual expense accounts for the entry, not a Reserves entry. c. This answer is incorrect because any entry using Change in Reserves account 1903 must use account 1903 for both the debit and credit portion of the entry. d. This is the correct answer. The entry is removed from index 443123 account 3100 with a credit, and properly expensed by debiting account 3150 in index 543123 2) The correct answer is B a. This answer is incorrect because the signs (debit/credit) are reversed. b. This is the correct answer. Since Reserves is a revenue account, you must CREDIT the incorrectly expensed index and DEBIT the index that should have gotten the expense using account 1903. 3) The correct answer is B a. This answer is incorrect because a July correction for a July expense is not a prior year expense restatement.   Account 1903 is used for prior year restatements, not current year restatements. b. This is the correct answer. Current year expense is removed from the incorrect index and account with a credit, and moved to the correct index and account with a debit. 4) The correct answer is B a. This answer is incorrect because salary expense is not moved with journal vouchers. b. This is the correct answer. Salary expense is moved in Banner with a PZAREDS form. c. This answer is incorrect because Labor Redistributions ended with the implementation of the Banner Payroll system on July 1st, 2008.  5) The correct answer is C a. This answer is incorrect because you cannot move a non-existent Reserves amount. If there is a Reserves that is less than the amount that needs to be removed from an index, 1903-Change in Reserves cannot be used. b. This answer is incorrect because expense account 3100 is never used to correct an unrestricted prior year expense misstatement.  c. This is the correct answer. Since both indices are in the same level 2 fund and have the same program, and since there is no Reserves amount to move, and the amount moved is small (<$5,000), account 8045-Interdepartmental Support is used. Remember that the total amount moved with this account cannot exceed $20,000/year, nor can any one entry exceed $5,000. APPENDIX 6 – OTHER RESOURCES ePrint FGRFNDH Fund Hierarchy Report in fin_banp-Finance Banner Production (banp) Repository

Account Codes Revisited

Presenter: John Brandt
Date: 05-11-2009

Presentation - PowerPoint
Handout - Word

  Expenditure Account Codes Revisited Presented by John Brandt 5/11/09 prepared by Terry Shoebotham Business Management Specialist In collaboration with: HSC & Main Campus Unrestricted Accounting HSC & Main Campus Contract & Grant Accounting Inventory Control  (University Services) Tax Accounting  (Main Campus Unrestricted Accounting 277-2018) Purchasing  (277-2036)     TABLE OF CONTENTS CLARIFYING THOSE ACCOUNT CODES 3 CLASSIFYING EXPENSES – THE GUIDING PRINCIPLES 3 CORRECT OPERATING LEDGER CATEGORY? 3 WHERE TO FIND ACCOUNT CODE LISTS 4 BASIC ACCOUNT CODE STRUCTURE 5 ITEM TEXT AND BUSINESS PURPOSE- BE DETAILED AND SPECIFIC 5 IS THE EXPENSE ALLOWABLE? 8 the following are some of the types of expenditures University funds may not be used for: 8 SUPPLY OR SERVICE 9 IS THE EXPENSE “FACILITIES & ADMINISTRATIVE EXPENSE EXCLUDABLE”? 10 FOREIGN STUDENTS, VISITORS, VENDORS (TAXATION RELATED) 10 MOVING EXPENSE (RELOCATION RELATED) 11 TRAVEL OR FOOD EXPENSE 11 COMPUTER (OR RELATED) EXPENSE 13 FURNITURE/FIXTURE/EQUIPMENT PURCHASES 14 FREQUENTLY MISUSED ACCOUNT CODES 14 PLANT MAINTENANCE OR A CAPITAL IMPROVEMENT 16 COMMON ERRORS 16 SUPPLY OR SERVICE? 16 INVENTORY CONTROL PCARD REQUIREMENTS 18 MAINTENANCE, REPAIR, OR RENOVATION? 18 GIFTS/SOUVENIRS/ADVERTISING 18 YOU MAKE THE CALL 19 APPENDIX 1: ACCOUNT CODE DEFINITIONS AND USAGE 27 APPENDIX 2: INVENTORY CONTROL 32 LIBRARY ONLY ACCOUNT CODES: 32 GREATER THAN OR EQUAL TO $10,000 EQUIPMENT 32 INVENTORY CONTROL ACCOUNT CODE DEFINITIONS 32 APPENDIX 3: OPERATING LEDGER CATEGORIES 36 APPENDIX 4: FOOD ACCOUNT CODES 37 APPENDIX 5: YOU MAKE THE CALL ANSWERS 38   CLARIFYING THOSE ACCOUNT CODES If you have looked at the UNM Chart of Accounts lately, you noticed that there are a lot of expense account codes.  During fiscal year 2008, 291 account codes, not including sub award or payroll account codes, were used to categorize items purchased by UNM.  You are expected to select the most appropriate account code for each expense you oversee.  For instance, there are 50 supply account codes and 17 travel  account codes, of which ONE is best for any given transaction.  In an effort to make your work easier, we are going to explain some guiding principles for selecting the most appropriate expenditure account code.  These principles will help you select an account code that will usually result in approval by Financial Services. We are also going to review and practice using these principles, particularly in regard to some of the most commonly misused account codes.  If you learn to correctly use these guiding principles you will significantly reduce the probability of your documents being returned to you by central accounting for correction. CLASSIFYING EXPENSES – THE GUIDING PRINCIPLES CORRECT OPERATING LEDGER CATEGORY? Just a few categories are used to organize the financial information contained in the Hyperion Operating Ledger reports.  Summary Reports categorize  account codes  as either Revenue or Expense while Detail Reports organize account codes under the three categories of Revenue, Salary Expense and Other Expense.  On both reports, every account code that has financial activity during the period selected will be listed. For the purposes of this Manual, the remainder of our discussion will focus on account codes categorized as “Other Expense,” or as “Operating Expense Other” (as on the ePrint Account Hierarchy Report).  Principal subcategories used include: Supplies, Travel, Student Costs, Research Costs, Patient Care Costs, Communication Charges, Services, Plant Maintenance, Utilities, Capital Expenditures, and Other Expenses. Specific account codes fall within each of these subcategories.  Generally, for contracts and grants, the appropriate account code to use will be the one containing your approved budgeted. A Guiding Principle is this: Choose an account code that falls under the most appropriate subcategory.  If your expense involves meals purchased for a business meeting attended by non-UNM employees, and the purchase was made by an employee while traveling, the account code you use should be under the Travel heading.  If the expense involves the same type of business meeting, but is a food purchase for a local business meeting, the expense should NOT be under Travel, but rather under Supplies.   Under Travel you will find account code 3860-Bus Meals and Hospitality Gen.  Under Supplies you will find account code 31A0-Bus Food-Local.  The best way to decide which account code to use is by becoming very familiar with the Account Code structure as contained in the Account Hierarchy Report (and other sources listed below) and then following the guiding principle; choose an account code that falls under the most appropriate subcategory.  If the purchase is associated with travel, it belongs there.  If it is not associated with travel, it belongs under supplies.  If the purchase is a service (having brochures bound for you) rather than a good (buying the paper used to print brochures) it will belong under the Services subcategory. Operating Ledger Categories and helpful hints can be found in Appendix 3. WHERE TO FIND ACCOUNT CODE LISTS The Operating Ledger Account Code Definitions shows all the active account codes at UNM, and gives a definition and usage for each account code. To view or print this list, go to http://www.unm.edu/~gacctng/resources/OpLegAcctDef 6-23-08.pdf .  The  web site at  http://www.unm.edu/~gacctng/  has a list of “frequently used account codes”.  For most of your needs this list will suffice.  It is significantly shorter, and contains definitions for the account codes listed. You can obtain a list of all account codes by running ePrint report FGRACTH.  This report is found by signing into ePrint, going to the fin banp – Finance Banner – Production (banp) directory, and selecting FGRACTH from the report list in the small drop down box at the bottom of the page.   This report does not give a definition or usage for the account codes.   BASIC ACCOUNT CODE STRUCTURE Please Note: Income account codes begin with a zero or one and regardless of the name, they are not to be used for expenses. First Digit of Account Code Type of Account Code 0 Revenue 1 Revenue & Transfers 2 Labor expenses 3 Supplies & Travel 4 Student and Research Costs 5 Patient Care Costs 6 Communication Charges and Services (See Services, below) 7 Plant Maintenance (i.e., repair, maintenance, painting; frequently a type of service) 8 Other Expenses, special Contract & Grant Expenses 9 Capital, Bond, and non-cash expenditures or fringe benefits There are only eight expense subcategories (those account codes beginning with digits 2 – 9).  Of these, account codes beginning with 2 are labor account codes, and not to be used for general expenses.  Account codes beginning with 8 are to be used only for certain Contract and Grant expenses. This leaves only six regularly used subcategories.  Ensuring that each expense is placed in the correct subcategory is the most important step in recording your expenses; however, department choice sometimes determines  the correct account code within that subcategory. Some account codes, however, must be used for specific purchases.  These account codes will be reviewed in this manual. ITEM TEXT AND BUSINESS PURPOSE- BE DETAILED AND SPECIFIC Some documents are disapproved not because the wrong account code was selected, but because the item text or business purpose did not sufficiently explain the transaction to support the account code choice.  The guiding principle here is, explain the transaction!  Who (students, faculty, staff, names, titles, UNM or not)  What (Banner ID # & date, event, activity, purchase, contract)  Where (on campus vs. off campus)  Why (business purpose) Provide original Banner document numbers and post dates for any transactions you are moving elsewhere. Provide your name and phone number. Your document will NOT be denied if you give more information than is needed; however, it can be denied if you do not give enough. For example: An insufficient business purpose may state: Attend medical conference in Hawaii A more Sufficient business purpose would state: Attend the AMA Cardiology Conference on cardiovascular imaging, which benefits Dr. Smith and UNM with learning the latest imaging technology that can be taught in the classroom, and used in the clinical operations.   IS THE EXPENSE ALLOWABLE? UNM Business Policy 4000 – Allowable and Unallowable Expenditures, which explains what is allowable and unallowable can be  found at http://www.unm.edu/~ubppm/ubppmanual/4000.htm.  What follows is a brief summary to assist you with some of the most common questions that arise.   THE FOLLOWING ARE SOME OF THE TYPES OF EXPENDITURES UNIVERSITY FUNDS MAY NOT BE USED FOR: University funds may NOT be used to pay for the maintenance and upkeep of privately owned vehicles, such as insurance, fuel, tune-ups, lubricants, tires, licenses, and other repairs, even though these vehicles may be used for University business. The employee may, however, be eligible for mileage allowance reimbursement under the University's travel policy The purchase of personal gifts, including but not limited to flowers and other gifts expressing sympathy, bereavement, or congratulations to faculty, staff, and students IS PROHIBITED, unless approved by other University published policy (for example, employee service awards). University funds may NOT be used to purchase holiday decorations for University offices and buildings. The purchase of office refreshments (including coffee makers, food and beverages) IS PROHIBITED, except when the refreshments are to be consumed primarily by guests of the University or at business meetings. Entertainment of University employees (for example, meal expenses), other than pursuant to the University's travel policy, IS PROHIBITED. Exemptions are allowed when the function is a hospitality event that includes both University employees and invited guests of the University. In accordance with Internal Revenue Service (IRS) regulations, all requests for reimbursement of hospitality expenditures or requests for payment of invoices must be accompanied by a list of the individuals attending the function. For functions attended by more than twenty (20) people or open to the public, a description of the function and definition of the guests invited is sufficient. The purchase of alcoholic beverages IS PROHIBITED except when incurred in the performance of University business such as a hospitality event for guests of the University. When alcoholic beverages are served on campus, the function must be approved, in advance in writing by the President. PAYMENT OR REIMBURSEMENT FOR THE PURCHASE OF ALCOHOLIC BEVERAGES SHALL NOT BE MADE FROM INSTRUCTION & GENERAL APPROPRIATED FUNDS OR CONTRACT AND GRANT FUNDS. When alcoholic beverages are served on campus, University restrictions on location and student participation must be complied with. The expense must be for a public purpose that benefits the University.  If you are not sure if an expense would be allowable, contact your Accountant or Fiscal Monitor BEFORE you make the purchase. SUPPLY OR SERVICE When you are primarily purchasing materials that will be used in the department, you are purchasing a supply. Example: Supply:  We bought the materials. We purchased special paper, glue, and fasteners to create non-promotional brochures Use: 31G0-Binding Supplies Gen  Materials used to hold together leaflets, manual etc… OR 3100-Office Supplies Gen OR Other supply account code used by your department Example: Service: We paid someone else to do the job We paid Kinkos to print and/or bind our brochure Use: 6350-Promotional Exp F&A Excludable Gen  Used when the brochure was designed solely to promote the university OR 6370-Printing/Copying/Binding Gen The cost of all non-promotional printed forms and documents.  Includes tickets and programs for athletic events or stage performances, art show catalogs, research bulletins and journals, student publications, mailers, calling cards, stationery, receipt forms, and other printed material.  Also includes any associated binding costs. OR Other appropriate service account code used by your department Other Services 63A0-Conference Fees Gen  Fees paid to attend conferences. 63A1-Event Fees Fee paid to lock in a performance or event.  Example: Maxwell Museum event.  (NOT the fee paid to attend a conference.) 70C1-Equip Warranties/Service Contracts  Equipment Warranties & Service Contracts for Equipment. 70D0-Equipment Repairs Maintenance Gen  The cost of repairing and maintaining UNM equipment.   IS THE EXPENSE “FACILITIES & ADMINISTRATIVE EXPENSE EXCLUDABLE”? The University is required to separately track “F&A Excludable” expenses for accounting purposes.  Facilities and Administrative expenses are those expenses that, while allowed by UNM Policy, are not allowed as an expense when UNM calculates Federal F&A rates every 4 years.  UNM must segregate these expenses so they can be removed from the F&A calculations when this rate is calculated.  Expenditures that are allowable by UNM Policy but are solely promotional are F&A Excludable. [See OMB Circular A-21 for a more detailed explanation.]  If you are unsure whether an expenditure is F&A Excludable, call your accountant or fiscal monitor and ask.  Account Purpose 31B0-Food F&A Excludable Alcoholic beverages; food expenses for entertaining, fund raising, and marketing; and student activities and alumni expenses. 37Y0-Supply Costs F&A Excludable Supplies used for promotional activities. 39Y0-Travel F&A Excludable Travel associated with lobbying, entertainment. 6350-Promotional Exp F&A Excludable Gen Promotional items, gifts, and the costs of advertising and public relations designed solely to promote UNM. 69Y0-ProfessionalService F&A Excludable Services purchased for F&A Excludable activities or items. FOREIGN STUDENTS, VISITORS, VENDORS (TAXATION RELATED) If you have a transaction involving a foreign student, visitor or vendor, you must use one of the following account codes. These account codes ensure that the transaction is properly reviewed for withholding purposes: Travel 3850, 4682, 4683 Awards 4021 Participant Fees 40A1 Stipends 4661 Honoraria 63E1 Services 63V1 Royalties 8081 Sub-Contracts 88XX (C&G only) MOVING EXPENSE (RELOCATION RELATED) Moving Expenses must be expensed using account 38L0-New Employee Moving Expense Gen.  House hunting is a moving expense that cannot be expensed to other Travel Accounts. All relocation related expenses belong under Moving expense in 38L0.  This includes all costs associated with house hunting trips, as well as the actual expenses incurred during the move itself.  When in doubt, ask your accountant or fiscal monitor.  TRAVEL OR FOOD EXPENSE Food expense generally belongs in one of the following accounts: 31A0-Business Food-Local Food consumed LOCALLY, primarily by staff, faculty, and their UNM guests in situations where the meal is incidental to the meeting, lecture, etc. Examples: refreshments for staff (or students) during a day-long retreat, conference, or training session; a meal with  a guest speaker; or snacks for volunteers at Popejoy events. Please provide a detailed list with names, companies, job titles if < 20 attendees, or a general list of who from where if  > 20. 31B0-Food IDC Excludable Gen All alcohol.  Food for student activities that are not instruction-related and food for marketing, entertaining, fundraising, and promotional activities.  Events must involve the public/community/ students.  Examples: BBQ social hour with students and faculty, luncheon with potential donors, entertaining the Brazilian Trade delegation, and dinner with grad students and guest speaker. Please provide detailed list with names, companies, job titles if < 20 attendees, general list of who from where if > 20. 31M0-Recruitment Expense Gen  Food purchased for faculty recruitment.  Provide names, companies, job titles.  Account is  not just for food. 3860-Bus Meals and Hospitality Gen All business related food expenses (excluding recruitment-related meal expense) incurred by UNM Employees while traveling.  This account code is under the Travel subcategory.  No local food expenses belong in this account. 40C0-Food Services Gen Normally C&G grants or Athletics.  Includes meal expense specifically subsidized by funding agency for student participants. Please provide detailed list with names, description.   Travel expense generally belongs in one of the following accounts: 3800-In State Travel Gen Includes all in-state travel expenses incurred by employees while traveling on behalf of UNM with the exception of Athletic Department staff.  Specific allowable expenses include mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 3820-Out of State Travel Gen Includes all of the out-of-state travel expenses incurred by employees while traveling on behalf of UNM.  Does NOT include Athletic staff travel.  Specific allowable expenses include mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 3840-Foreign Travel Gen Includes all of the Foreign travel expenses incurred by employees while traveling on behalf of UNM.  Does NOT include Athletic staff travel.  Specific allowable expenses include mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 3850-Foreign Visitor to UNM Travel Gen Travel expenses incurred by a Foreign Visitor to UNM (not an employee); includes travel by foreign students. 3860-Business Meals and Hospitality Gen All business related food expenses (excluding recruitment-related meal expenses) incurred by UNM Employees while traveling.  This account is under the Travel subcategory.  No local food expenses belong in this account code. 38N0-Travel Recruiting Gen Transportation, lodging, meal expenses for candidates traveling to UNM campus; can include spouse if deemed appropriate by Hiring Officer. 38N1-Travel Recruiting Student Travel, lodging, and meal expenses for candidates traveling to UNM campus; can include spouse if deemed appropriate by Hiring Officer or Recruiting trips by Athletics. 38P0-Travel Group Gen Includes all Team Travel and Student/Teacher Group travel such as transportation, lodging, meal expense. 39Y0-Travel IDC Excludable  Travel expenditures associated with lobbying, entertainment or other IDC excludable costs.   39Z1-Travel Non UNM Employee-Non Foreign Includes all of the travel expenses incurred by non-UNM employees while traveling on behalf of UNM.  Does NOT include Athletic Department staff travel.  Specific allowable expenses include mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 4080-Student Travel Gen Includes travel expenses specifically subsidized by funding agency.  May include travel to a conference site.  Does not apply to athletic grant-in-aid. COMPUTER (OR RELATED) EXPENSE 3189-Computers This account includes computers, such as laptops and PC desktops, with a unit cost less than $5,001.  Note: this account code DOES NOT INCLUDE servers,  printers, and monitors if itemized separately.  When coding the purchase order, computer systems should, if possible, be broken down into their individual components. PC desktops should be for cpu only, and code the rest to 3150 (if possible). If the charges for the monitor and other accessories are stated separately, then these charges must be coded to account 3150.  However, systems that cannot be broken down and cost more than $5,001 are expensed to 9020-Computer Hardware >$5,000. Example: A department purchases a desktop computer system for $4,000.  The CPU is expensed to 3189.  The itemized monitor, mouse, and keyboard are expensed to 3150.  3150-Computer Supplies and Servers This account code includes computer and printer accessories, peripherals, and printers under $5,001.  Items such as monitors, surge protectors, mice, tablets, printer paper, toner are expensed to this account.  Computer servers less than $5,001 are expensed here.  If the cost is above $5,001, use 9020-Computer Hardware >$5,000. Example: A department purchases, for $4,500, an entire computer system which included a printer and a palm pilot for the department head.  The itemized monitor, mouse, keyboard, printer, and palm pilot are all expensed to  account code 3150.  The CPU is be expensed to account code 3189.  9020-Computer Hardware >$5,000 Includes larger computers, servers, and computer systems costing more than $5,000. 70C1-Equipment Warranties/Service Contracts For Warrantee or Maintenance agreement for which a CONTRACT exists.   70D0-Equipment Repairs Maintenance Gen This account is used for sporadic calls for repair of broken or malfunctioning equipment for which NO CONTRACT exists. FURNITURE/FIXTURE/EQUIPMENT PURCHASES 3180-Non Capital Equipment <$5,000 This account code is for equipment with a per-item cost less than $5,001.  Examples: Chairs, printers, and bookshelves. 3185-C&G Non Capital Equip $1,000-$5,000 This account code is used for Contract & Grants non-computer equipment with a per-item cost between $1,000 and $5,000.  For Restricted Fund use. 9000-Equipment/Furniture >$5,000 This account code is used for the cost of equipment and furniture that is capitalized, with a cost greater than $5,000.00 per item. 9040-Equipment Non UNM Titled Gen This account code is used for equipment purchased through a contract or grant with a unit cost >$5,000, where title to equipment vests with the funding agency. 9060-Equipment Fabricated Gen This account code is used as a holding account for the costs associated with a fabricated (constructed) piece of equipment, which will have a unit cost >$5,000 when completed.  These costs will be Journal Vouchered to a Capital Account Code upon completion. 9300-Fixed Equipment Gen This account code includes the cost of fixed equipment (installed, affixed or attached to a building structure). FREQUENTLY MISUSED ACCOUNT CODES Supplies  3100-Office Supplies Gen Includes the cost of paper products, writing materials, and miscellaneous supplies used in administrative office functions, not for resale.  Consists primarily of consumable materials, but also includes inventory of low-cost office tools, such as staplers. VERY FLEXIBLE.  This account code is often used as a P Card default account code. 3140-Computer Software Gen Includes software (on disks, licensed, or downloaded)  required to operate in-house computers. All computer software purchased is expensed here.  Extremely large software purchases will be moved to the correct account code under the Capital Expenditure heading at year end.    Local Conferences Costs for local conferences are to be broken out.  The following account codes are frequently used: 31A0- Business Food-Local  Conference meals. 31B0- Food IDC Excludable Gen  Alcohol. 39Z1- Travel Non UNM Employee-Non Foreign  Travel to the event. 63A1-Event Fees  Fee paid to lock in a performance or event. 63B1-Media Rentals  Video, DVD, etc. rentals. 7060-Facility Rent Expense  Conference room rental. Software Software belongs in account code 3140.  The following items, however, are not software: 6310-Internet Fees Gen Services accessed online, including computer programs that are rented or leased are expensed here. 6315-Electronic Databases Databases that are stored, serviced, and maintained by others for a fee are expensed here.  Library use only. Equipment versus Warranties and Service Contracts for Equipment: 3180-Non Capital Equipment <$5,001 Use for unrestricted funds. Equipment with a per-item cost less than $5,001.  Examples: Chairs, Bookshelves, paper shredders, band instruments, file cabinets. 70C1- Equipment Warranties/Service Contracts Warrantee or maintenance agreements for which a CONTRACT exists.  It is NOT part of capital purchases.   PLANT MAINTENANCE OR A CAPITAL IMPROVEMENT Plant Maintenance: Routine replacement of worn items, even if expensive Example: Replacing all the electrical wiring in a building for $250,000. [It is replacement of a worn or obsolete item.  It costs less than $500,000.] 70xx account codes.  Call Inventory Control if unsure of exact account code. Capital Improvement: New equipment or renovations that are expensive Example: Constructing a $1,000,000 addition to a building, significantly expanding its size.  [It is a new item.  It costs more than $500,000] 9xxx account codes.  Call Inventory Control if unsure of exact account code. COMMON ERRORS This section provides examples we see of common errors in account code usage. SUPPLY OR SERVICE? Example: A department purchased 5 boxes of paper from the company that designed their department logo.   The paper is a supply, and should not be expensed to a service account code.  3100-Office Supplies General is an acceptable account code.  69Z0-Other Professional Services General, is NOT an acceptable account code. Example: A department purchased a new department logo design. The logo design is a service, and should not be expensed to a supply account code.  69Z0-Other Professional Services General is an acceptable account code.  3100-Office Supplies General, is NOT an acceptable account code. Most basic supplies that are not patient related are charged to 3xxx.  Most services are charged to 6xxx.  Services require an electronic SPQ [Service Provider Questionnaire, available at http://www.unm.edu/~gacctng/forms.html] if the vendor is not a Universal Service Provider. The easiest way to find out if a vendor is a Universal Service Provider (USP) is to look at the list on the Purchasing website at http://www.unm.edu/~purch/SPQ.pdf .  If the vendor is listed, they are a USP. Another way to find out if a vendor is a designated Universal Service Provider (USP) is to use Banner form FTIIDEN.  You can: •  Type in the vendor ID and query it. • Click the Web Xtender icon. • If the SPQ form is there, then it is an approved USP. • Double click on the SPQ document to review it. If relying on a Universal SPQ, you MUST include the following statement in the Business Purpose/Detailed Item Description field when completing your requisition in LoboMart:  “The vendor has been approved as a Universal Service Provider, and to my knowledge there is no conflict of interest per Policy 4325, Section 3.”   INVENTORY CONTROL PCARD REQUIREMENTS When purchasing a computer with a PCard, Inventory Control requires certain information regarding the computer purchase. To supply this information please use the Inventory Control Computer Purchase Form. This form may be found on the Purchasing website at: http://www.unm.edu/~purch/pcardtrain/computer.html.  This web form is automatically forwarded to Inventory Control so that an equipment tag may be issued for the computer. Problems or questions with the form?  Call Purchasing at 277-2036. MAINTENANCE, REPAIR, OR RENOVATION? When one company is hired to make significant changes in a physical space, you have a renovation.  When a company is hired primarily to make a worn space look better by applying new paint or replacing worn carpets, you have maintenance.  When damaged areas are being repaired, such as replacing panes on a broken window, or replacing sagging ceiling tiles caused by a roof leak, you have a repair.  If you are in doubt about the correct account code call Inventory Control, explain the details of your situation, and ask them for the correct account code. GIFTS/SOUVENIRS/ADVERTISING Expenses of this type must be incurred only to promote the University.  Gifts cannot be given to staff or faculty.  As well, I&G funds can never be used to purchase gifts, souvenirs or advertising. If any item that appears to be a gift is purchased, it will get particular scrutiny.  Be very specific in your item text.  Explain how the items purchased promoted the University.  These items belong in an F&A Excludable account code such as 6450 or 37Y0.  Floral arrangements for graduation belong in 37Y0.   YOU MAKE THE CALL 1) Dr. Smith had an advertising brochure produced for his office.  He hired Marty Johnson of ABC Printing to assist with the design of the document and produce it.  You just received  Marty’s invoice, which reads:       What account code or account codes could you use to expense these charges?  Why? A) Account code 3100-Office Supplies General.  We purchased paper with printing on it.  This is a supply. B) Account code 6370-Printing/Copying/Binding Gen. We purchased the design of the brochure.  This is a service that includes printing and binding. C) Account code 6350-Promotional Expense F&A Excludable.  This is a service for an F&A excludable item. D) Account code 55Z0- Other patient supply costs.  These brochures are for patients, so they go in the Patient Care Cost category.   2) Popejoy had an educational brochure produced for elementary school teachers to advance cultural awareness of their program.  He hired Van Johnson Designs, Inc.  You just received their invoice, which reads:         What account code or account codes could you use to expense these charges?  Why? A) Account code 6350-Promotional Expense F&A Excludable.  This is a service for an F&A excludable item. B) Account code 6370-Printing/Copying/Binding Gen. We purchased the design of the brochure.  This is a service that includes printing and binding. C) Account code 3100-Office Supplies General.  We purchased more paper.($12,000) than design.($2,500).  This is a supply. D) Account code A801-Inventory Other.  We got a lot of brochures, so they are inventory now.   3) Dr. Red Mond needed surveys for his patients.  He hired Ralph Getty to design the surveys and had them printed in-house. Ralph’s hand written invoice, which Dr. Red Mond just gave you, reads:     What account code or account codes could you use to expense these charges?  Why? A) 20P0-Temporary Salary Gen. Ralph is an individual, not a business.  He was temporarily employed by UNM to design this survey. B) 0280-Testing Fees General.  These surveys will be used to test patients for various diseases. C) 3100-Office Supplies General.  This category can be used for all office supply purchases. D) Account code 69Z0-Other Professional Services.  Ralph provided a service by designing the brochures.   4) You are doing your PCard reallocation in Banner (FWAINVT). You are reallocating a purchase for your department that totaled $3,527.32.  This order was for reams of paper ($2,006.00), toner cartridges for several printers ($892.17), and a new copier ($629.15).  The paper will be used for the various printers and the copier.  Your routine work includes making copies of forms, instruction sheets, and brochures for various Doctors in your department. What account code or account codes could you use to expense these charges?  Why? A) Account code 3100-Office Supplies General.  These are all office supplies.  This is the most appropriate category. B) Account code 3100-Office Supplies General for the paper and Toner.  Account code 3150-Computer Supplies and Servers <$5,001 for the copier. C) Account code 3100-Office Supplies General for the paper and Toner.  Account code 9530-Site Improvement General for the copier.  The copier greatly improved our work site. D) Account code 3100-Office Supplies General for the paper and Toner.  Account code 3180-Non Capital Equipment <$5,001 for the copier.   5) Your department maintains records for copier usage and charges the users’ index based on the number of copies made each month at 5 cents/page.  During the month 4,000 copies were made by various departments. What revenue account code or account codes could you use for these charges?  Why? A) Revenue account code?  I will credit 3100-Office Supplies General for the cost, to reduce the cost of the paper and toner we used to make these copies. B) I will credit the new Internal Service center revenue account code, 0699-Miscellaneous Services. C) I will credit account code 08Z0-Miscellaneous Gen. for this small amount of revenue. D) I will credit 37Z0-Other supply Costs General, because it is currently overspent and we still need to purchase more supplies using this account code. What expense account code or account codes could you use to expense these charges?  Why? A) I will expense these copies to 3100-Office Supplies General.  This is paper and toner. B) I will expense these copies to 69Z0-Other Professional Services General.  We provided a service to the other departments by making these copies for them. C) I will expense theses copies to 63C0-Copying Gen.  We are selling copies. D) Our department uses the barter system.  The copies are offset by some used furniture they gave our department last month.  No entry is required.   6) Your department purchased a desk top computer with a monitor, keyboard and mouse.  At the same time you also purchased from the same vendor two new printers.  The invoice is below:       What account code or account codes could you use to expense these charges?  Why? A) I will use 9020-Computer Hardware for all of these charges. B) I will use 3189-Computers for the computer, and 3150-Computer Supplies and Servers for the rest of the invoice items. C) Since this is one purchase, I will use 3189-Computers for the entire invoice. D) I will use 3180-Non Capital Equipment for all the charges since the total is under $5,001.   7) Your office is being renovated.  An outside company has been hired to tear down two walls, replace six windows, two of which are cracked, and replace the worn carpet with new carpet.  They are also supplying 3 new workstations, at a cost of $4,500 per station.  Each station includes cubicle walls ($1,970), two upper ($800 each) and one lower ($450) cabinet, a desk surface ($300), and a chair ($180).  Their bill follows:           What account code or account codes could you use to expense these charges?  Why? A) I have no idea, so I will guess that 9220-Building Improvement Gen is correct.  It sounds pretty good…. B) I have no idea, so I will divide it all up, as follows: Labor to: 69Z0-Other Professional Services General The rest to: 9000-Equipment/Furniture >$5,000  (If I’m wrong, maybe no one will notice….) C) I have no idea, so I called my friend in another department that had a similar expense last year.  We decided: Labor, windows, carpet to 7000-Plant Repairs Furniture to 9000-Equipment/Furniture >$5,000 D) I have no idea, so I called Inventory Control, and I am expensing it the way they told me to: Labor, windows, carpet to 7000-Plant Repairs Modular furniture to 9000-Equipment/Furniture >$5,000 Office chairs to 3180-non capital equipment <$5,001   8) Your department purchased a piece of equipment.           What account code or account codes could you use to expense these charges?  Why? A) Account code 9000-Equipment /Furniture >$5,000, because this is capital equipment, and the entire amount is capitalized. B) Account code 9000-Equipment/Furniture for everything except the Warranty.  The Warranty goes in account code 70C1-Equipment Warranties/Service Contracts.  Warranties are not capitalized. C) This is nasty.  The Equipment goes in 9000-Equipment/Furniture >$5,000, the Warranty in 70C1-Equipment Warranties/Service Contracts, the Shipping in 31D0-Freight In-Bound, the installation in 63X0-Technical Services Gen, and the training in 63T0-Contract Services General. D) One look at this and I got a headache.  I went home sick and my supervisor did something with it.  Wherever it went, it is not my fault!   APPENDIX 1: ACCOUNT CODE DEFINITIONS AND USAGE University of New Mexico Most Frequently Used Account Codes Main Campus Unrestricted Accounting Web site where located: http://www.unm.edu/~gacctng/ 07ZZ Reimbursements from Employees:  This revenue is used when funds are received from an employee and in some cases from other sources but needs to be applied against an expenditure via a Journal Voucher. Must have a zero balance at the end of the fiscal year. 08Z0 Miscellaneous Revenue Gen: Revenue not specifically identified in a separate account code. 3100 Office Supplies General:  The cost of paper products, writing materials, and miscellaneous supplies used in administrative office functions, not for resale. Consists primarily of consumable materials, but also includes inventory of low-cost office tools, such as staplers. 3110 Books Periodicals Gen:  Magazines Books, reference materials. Does not include textbooks or library books. 3131 Video Tapes:  Includes VHS or DVD media. 3140 Computer Software Gen:  Includes software and disks that are required to operate in-house computers. 3150 Computer Supplies & Servers <$5,001:  Includes computer and printer accessories, peripherals, and printers under $5,001, such as surge protectors, mice, tablets, printer paper, and toner. Includes computer servers less than $5,001.   3160 Copier Supplies Gen:  Includes paper, toner other supplies used to operate a copier . 3170 Custodial Supplies Gen:  Includes janitorial and sanitation supplies. 3180 Non Capital Equipment <$5,001:  Equipment with a per-item cost less than $5,001. Examples: Chairs, printers, bookshelves .   3185 C&G Non Capital Equip $1,000-$5,000:  C&G Non-computer equipment with a per-item cost between $1,000 and $5,000. For Restricted Fund use. 3189 Computers <$5,001:  Computers, such as laptops and PC desktops, with a unit cost less than $5,001. Note: excludes servers and printers. 31A0 Business Food-Local:  Food consumed primarily by guests of the University or at a business meeting where food is incidental to the meeting.  Food recorded in this account code is not associated with travel. 31B0 Food F&A Excludable Gen:  All payments for alcoholic beverages, provided they meet all other University requirements, should be charged to this account code. Food expenditures incurred while entertaining, fund raising, alumni activities and marketing, Office refreshments not consumed primarily by guests of the university or at business meetings. 31C0 Dues Memberships Gen:  Includes fees for membership in organizations such as professional organizations, or for regional or national associations.  Also includes professional licensing fees. 31K0 Postage Gen:  Includes the purchase of postage stamps, stamped cards and envelopes, and internal billings from the UNM Post Office for special services such as certified mail. 31L0 Printing Supplies Gen:  Supplies cost related to printing such as ink, paper, dye. 31M0 Recruitment Expense Gen:  Includes costs associated with on-campus interview processes such as recruitment advertising, employment agency fees, communication expenses, or meals for search committee members incurred during candidate’s campus visits (Athletics, Faculty recruitment, etc.) UBPP 4040 . 31M1 Staff Recruitment Expense Gen:  Includes costs associated with on-campus interview processes such as recruitment advertising, employment agency fees, communication expenses, or meals for search committee members incurred during candidates’ campus visits (Staff Recruitment). 37Y0 Supply Costs F&A Excludable:  Supply costs that are excludable under OMB Circular A-21. Includes commencement supplies, student activity costs, alumni activities and fundraising . 37Z0 Other Supply Costs Gen:  Supply costs that cannot be classified in account codes 31xx.   3800 In State Travel Gen:  Includes all  in-state travel expenses incurred by employees while traveling on behalf of UNM. Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses.  Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030 3820 Out Of State Travel Gen:  Includes all of the out-of-state travel expenses incurred by employees while traveling on behalf of UNM. Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses.  Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030   3840 Foreign Travel Gen:  Includes all of the foreign travel expenses incurred by employees while traveling on behalf of UNM. Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses.  Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030 3850 Foreign Visitor to UNM Travel Gen:  Travel expenses incurred by a Foreign National (not an employee).  UBPP 2180.  Includes foreign student travel. 3860 Bus Meals and Hospitality Gen:  All business-related food expenses purchased for guests while traveling, excluding meal expense incurred in the recruitment process. 3880 Vehicle Expense Gen:  Mileage reimbursement for the use of personal vehicles for in-town use. 38L0 New Employee Moving Expense Gen:  Actual expenses of transporting immediate household effects, furnishings, and personal effects, including packing, crating and insurance. UBPP 4020 38N0 Travel Recruiting Gen:  Transportation, lodging, meal expense for candidates traveling to UNM campus; can include spouse if deemed appropriate by Hiring Officer. UBPP 4030 & 4040 39Y0 Travel F&A Excludable:  Travel expenditures associated with lobbying, entertainment or other F&A excludable costs. See OMB Circular A-21.   39Z1 Travel Non UNM Employee-Non Foreign:  Includes all of the travel expenses incurred by non-UNM employees while traveling on behalf of UNM. Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses.  Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 6350 Promotional Exp F&A:  Excludable general promotional items and memorabilia, including models, gifts and souvenirs; costs of advertising and public relations designed solely to promote the university. OMB Circular A-21 Section J1. 6370 Printing/Copying/Binding Gen:  The cost of all printed forms and documents. Includes tickets and programs for athletic events or stage performances, art show catalogs, research bulletins and journals, student publications, mailers, calling cards, stationery, receipt forms, and other printed material. Also includes any binding costs that are associated with the before mentioned.   63A0 Conference Fees Gen:  Fees paid to attend conferences. 63A2 Seminars/Training Fees:  Fees paid to attend training sessions and or seminars.   63C0 Copying Gen:  The cost of copies made outside the department, not for resale (for example, copies made by the University Duplicating Services). 63E0 Honoraria Gen:  A payment to an individual of special achievement or renown, in return for that individual's willingness to visit the University and participate in a University event of short duration (such as speaker, reviewer, seminar participant, etc.) with the understanding that the payment does not constitute compensation commensurate with the actual services provided. SPQ not required. MAY NOT be paid to an employee. 63E1 Honoraria -Foreign Visitor:  A payment to an individual of special achievement or renown, in return for that individual's willingness to visit the University and participate in a University event of short duration (such as speaker, reviewer, seminar participant, etc.) with the understanding that the payment does not constitute compensation commensurate with the actual services provided. SPQ not required. Foreign individuals only.  MAY NOT be paid to an employee. 63V1 Consultant Fees - Foreign Visitor:  "Foreign" individual providing consulting services. 69Y0 Professional Service F&A:  Excludable Professional Services excluded under OMB Circular A-21. 69Z0 Other Professional Services Gen:  Includes the cost of professional services provided by an outside, non-campus source, as agreed by contract, excluding those assigned to other 63* or 69* account codes. 8045 Interdepartmental Support:  See the Unrestricted Accounting HSC or Main website for policy and procedures.  Account code 8045 MUST be the debit AND credit side of any entry in which it is used. 8060 Other Operating Costs Gen:  Cost required for continuing operations, excluding those cost defined elsewhere in the chart of accounts. 9000 Equipment/Furniture >$5,000:  Includes the cost of equipment and furniture that is capitalized, with a cost greater than $5,000.00 per item.   9020 Computer Hardware >$5,000:  Includes the cost of computers and computer equipment that are capitalized, with a per item cost greater than $5,000 (per item would be CPU and monitor combined.) Examples: laptop w/a unit cost >$5,000, desktop computer w/a unit cost > $5,000, computer servers. Does not include warranties, maintenance agreements, or supplemental software not necessary for the operation of the computer.   APPENDIX 2: INVENTORY CONTROL Inventory Control Questions?  Call:  277-7715 Email:  plantfun@unm.edu Website: http://www.unm.edu/~plantfun/ LIBRARY ONLY ACCOUNT CODES: The following account codes can only be used by Main Campus libraries, such as HSC Library, Zimmerman Library, Parish Library, Centennial Science & Engineering Library, etc.  These account codes CANNOT BE USED for departmental libraries. 6312, 6313, 6314, 6315 and account codes beginning with 91**. GREATER THAN OR EQUAL TO $10,000 EQUIPMENT The State of NM Higher Education Department (HED) Procurement Code requires that any SINGLE PIECE of equipment whose purchase price is greater than or equal to $10,000 must be charged to a plant fund index. Departments must use a plant fund index for this type of equipment.  The fund will have a “P” in the description.  For example, 2Pxxx, 3Pxxx, etc. The Program code for the index will be P501.  Contact Inventory Control if you have any questions. INVENTORY CONTROL ACCOUNT CODE DEFINITIONS (found under http://www.unm.edu/~plantfun/ , “Memos and Updates”) The Inventory Control Department has recently received questions regarding which account codes to use for equipment and computer purchases. This memo is intended to clarify the use of certain account codes for these purchases and to supplement the attached Equipment Account Code Decision Tree.  If you have any questions on this information or regarding which account code to use for a purchase of equipment or computer, please contact Inventory Control at 277-7715 or via email at plantfun@unm.edu. Account code 3140 Computer Software – This account code is used for the following type of purchases: • Microsoft PowerPoint software • Adobe Acrobat software NOTE: This is only application software purchased for existing computers (i.e., the computer did not have the software already installed when the machine was originally purchased). Account code 3150 Computer Supplies <$5,001 – This account code is used for the following type of purchases: • Printers • Hand-held PCs (i.e. Palm Pilots) • Computer servers • Monitors (replacement monitors only) • Computer accessories (i.e. mouse, keyboard, etc) purchased separately from an entire computer system. NOTE 1: Each of the above items should have an individual cost of $5,000.00 or less. NOTE 2: An entire computer system would mean that there is one (1) cost stated on the quote/purchase order for the computer, monitor and all accessories. Account code 3180 Non Capital Equipment <$5,001 – This account code is used for the following type of purchases: • Fax machines • Projectors • Lab equipment (centrifuges, balances) • Any equipment that has a cost of $5,000.00 or less and does not meet the criteria of any other account code listed in this memo. Account code 3189 Computer <$5,001 – This account code is used for the following type of purchases: • Desktop computers (CPU only) • Laptop computers • Tablet computers NOTE: Each of the above items should have an individual cost of $5,000.00 or less. Account code 70C1 Equipment Warranties/Service Contracts – This account code is used for warranties or service contracts that have a separate stated cost on the purchase order. Account code 70E0 Computer Hardware Maintenance – This account code is used for repairs or maintenance to computer hardware. Account code 70E1 Computer Software Maintenance – This account code is used for repairs or maintenance to computer software. Account code 9000 Equipment/Furniture >$5,000 – This account code is used for equipment/furniture purchases that have all three (3) of the following characteristics: • It is movable • The cost of the item itself is greater than $5,000.00 • The life of the item is greater than one (1) year. NOTE 1: If there are freight or installation charges (regardless of the cost) associated with this purchase – these charges should also be  coded to the 9000 account code. NOTE 2: If there are upgrades to an existing piece of equipment that are greater than $5,000.00 (for each individual upgrade), these purchases should also be charged to the 9000 account code. EXAMPLE: If you purchase $10,000 in office chairs and each chair costs $50 – the entire purchase should be charged to account code 3180 because each individual item does not have a cost that is greater than $5,000.00. Account code 9020 Computer Hardware >$5,000 – This account code is used for computers and servers (hardware only) that have all three (3) of the following characteristics: • It is movable • The cost of the item itself is greater than $5,000.00 • The life of the item is greater than one (1) year. NOTE 1: If there are freight or installation charges (regardless of the cost) associated with this purchase – these charges should also be coded to the 9020 account code. NOTE 2: If there are upgrades to an existing piece of computer hardware that are greater than $5,000.00 (for each individual upgrade), these purchases should also be charged to the 9020 account code. EXAMPLE: If you purchase 10 computers for a total of $6,000 (each computer costs $600), the entire purchase should be charged to account code 3189 because each individual item does not have a cost that is greater than $5,000.00. Account code 9040 Equipment Non UNM Titled – This account code is used if: • Equipment is purchased on a contract or grant that states the equipment is the property of the funding agency. • UNM will not have title to the equipment being purchased. • It is movable and has a life that is greater than one (1) year.   Account code 9060 Equipment Fabricated – This account code is used if: • Parts are purchased for equipment to be built (fabricated) at UNM. • The finished total cost of the equipment is greater than $5,000.00. • The finished piece of equipment will not be part of a building or attached to a structure. NOTE 1: This account code is not used for assembly or installation costs that are associated with an item that is not being fabricated at UNM. NOTE 2: When the fabrication project (equipment) is complete, please notify the Inventory Control Department so that we may capitalize this piece of equipment. EXAMPLE: A department purchases parts to be used to construct a piece of lab equipment that will be used to conduct experiments. The price of these parts would be charged to this account code. Account code 9300 Fixed Equipment – This account code is used for the following type of purchases: • HVAC systems • Alarm systems • Fire sprinkler systems. NOTE: This equipment is fixed and is not movable. This account code is used for equipment that is attached to part of a building.   APPENDIX 3: OPERATING LEDGER CATEGORIES These are the Categories in which your expenses must correctly fall.  Note that in some cases (most of them noted in this material) the expenses must also be in a specific account code.  At other times, the department can choose an account code WITHIN THE CORRECT CATEGORY where they wish an expense to fall. Category Note Salaries Redistribute to same account code. Payroll Benefits Will be redistributed to same account code. Supplies Be careful with computer related expenses. Travel Be careful with foreign visitors. All moving expenses MUST be in 38L0. Student Costs  Research Costs  Patient Care Costs  Communication Charges  Services  Plant Maintenance Keep warranties separate from repairs. Utilities  Other Expenses  Special Grant Contract Expenses Primarily all sub awardees. Capital Expenditures When in doubt, call Inventory Control. Helpful Hints for coding new expenditures: 1) Read the account code descriptions. 2) Look at previous expenses that are similar.  What account code has your department been using? 3) Call your accountant or fiscal monitor if in doubt.    APPENDIX 4: FOOD ACCOUNT CODES Account Code Description Purpose 31A0 Business Food-Local Food consumed LOCALLY, primarily by staff, faculty, and their UNM guests in situations where the meal is incidental to the meeting, lecture, etc. Examples: refreshments for staff (or students) during a day-long retreat, conference, or training session, a meal with a guest speaker, snacks for volunteers at Popejoy events. Please provide detailed list with names, companies, job titles if < 20 attendees, or a general list of who from where if > 20. 31B0 Food F&A Excludable All alcohol.  Food for student activities (that are not instruction-related), and marketing, entertaining, fundraising, and promotional activities. Events involve the public/community/ students.  Examples: BBQ social hour with students and faculty; luncheon with potential donors, entertaining the Brazilian Trade delegation; dinner with grad students and guest speaker. Please provide detailed list with names, companies, job titles if < 20 attendees, general list of who from where if > 20. 3800, 3820, 3840, etc. Travel  Per diem or actual food expense for a traveler, included with transportation, hotel, etc. 3860 Business Meals and Hospitality Gen All business-related food expenses purchased for guests while TRAVELING, excluding meals for recruitment. Please provide names, companies, job titles. 31M0 Recruitment Expense/Faculty Food purchased for faculty recruitment. Please provide names, companies, job titles. Not just for food. 31M1 Recruitment Expense/Staff Food purchased for staff recruitment. Please provide names, companies, job titles. Not just for food. 40C0 Food Services Student C&G grants, normally, or Athletics: Food expenses specifically subsidized by funding agency for student participants. Please provide names, description. Also used for daycare food. 4640 Participant Incentives C&G grants, normally, or Research: Food provided as a “reward or gift” for participation in a study or experiment. Please provide names, description.   APPENDIX 5: YOU MAKE THE CALL ANSWERS 1) Brochures were ordered from and supplied by an external company, ABC Printing.  • A service account code will be used.  • The best account code is 6350-Promotional Expense F&A Excludable.  An acceptable choice would be 69Y0-Professional Services F&A Excludable.  This is an F&A Excludable Expense in the services category.  These are the only F&A excludable account codes in the Services category. • Include adequate item text to justify the account code chosen. 2) Brochures were ordered from and supplied by an external company, Van Johnson Designs, Inc.  • A service account code will be used.  • Depending on how this item was budgeted, how it is customarily handled by Dr. Barstow’s department, and other related details, the correct account code may be one of these: 6370-Printing/Copying/Binding Gen, 63L0-Typesetting Printing Gen, 63L1-Graphic Design Gen, 63X0-Technical Services Gen, or 69Z0-Other Professional Services. • Include adequate item text to justify the account code chosen. 3) Survey design was ordered from and supplied by an external person.  Survey was produced in house by Dr. Red Mond’s department.  • A service account code will be used to pay Ralph. • Depending on how this item was budgeted, how it is customarily handled by Dr. Red Mond’s department, and other related details, the correct account code for Ralph’s design cost may be one of these: 63L1-Graphic Design Gen, 63X0-Technical Services Gen, or 69Z0-Other Professional Services. • Include adequate item text to justify the account codes chosen. 4) These are Supplies and Equipment Expenses. • An account code or account codes in the Supplies area will be used for the paper and toner, such as 3100-Office Supplies General. • Account code 3180-Non Capital Equi9pment <$5,001 will be used to expense the copier. • Include adequate item text to justify the account codes chosen. 5) These are minor ($100,000/year in sales) internal service center allocations.  See more Internal Service Center guidelines for more information at: http://www.unm.edu/~gacctng/changesinternalservicecenterproc.html • The revenue account code is 0699 • The expense account code is 63C0-Copying Gen • Note that you do NOT use 3100-Office Supplies as your expense account code.  This is a supplies account code, and you have provided a service. • Include adequate item text to justify the account codes chosen.  Mention that this is a minor internal service center allocation. 6) This is the purchase of a computer under $5,001 and a printer.  The items are itemized in the receipt. • The computer ($1,200) will be expensed under 3189-Computers • The two printers ($750) and monitor ($400) will be expensed under 3150-Computer Supplies and Servers <$5,001. • Include adequate item text to justify the account codes chosen. 7) This is the purchase of office renovations, chairs, and modular furniture. • The labor, windows, and carpet would be expensed to account code 7000 Plant Repairs Maintenance because the charges do not total $500,000 or more and do not constitute a major project. • The cubicles, desk surface, chairs, and cabinets, which are modular furniture, would be expensed to account code 9000-Equipment/Furniture >$5,000, since the combined cost is >$5,000.  If the combined cost had been less than $5,000, they would have been expensed to 3180-non capital equipment <$5,000. • The three office chairs would be expensed to a supplies account code such as 3180-non capital equipment <$5,000, since they are less than $5,000. 8) This is the purchase of equipment greater than $5,001.  This equipment must be capitalized. • The Gizmo will be expensed to account code 9000-Equipment/Furniture >$5,000 • The shipping, Installation, and staff training will also be capitalized in account code 9000-Equipment/Furniture>$5,000 • The warranty will be expensed in account code 70C1-Equipment Warranties/Service Contracts, since warranties are not capitalized. • See why you need to call Inventory Control sometimes?  

Avoiding NSF Through Appropriate Budgeting

Presenter: Norma Allen
Date: 02-09-2009

Presentation - PowerPoint
Handout - Word

  Avoiding NSF Through Appropriate Budgeting   Presented by Norma Allen 2/9/09 (updated for reserves 11/8/11)   prepared by Terry Shoebotham Business Management Specialist With major assistance from: Office of Planning, Budget and Analysis HSC Budget and Administration TABLE OF CONTENTS NSF CHECKING 3 WHO AND WHAT ARE AFFECTED BY NSF REJECT? 3 HOW DOES BANNER CALCULATE NSF? 3 TRANSACTIONS SUBJECT TO NSF CHECKING: 3 TRANSACTIONS NOT SUBJECT TO NSF CHECKING: 4 ACCOUNT CODES DO NOT AFFECT NSF 4 HOW TO TELL YOU ARE IN NSF STATUS 4 INDICATORS OF NSF: 4 TOOLS TO ASSIST YOU IN CHECKING FOR NSF INCLUDE: 6 HOW TO AVOID NSF SITUATIONS 12 PROACTIVE MEASURES THAT CAN BE TAKEN TO AVOID NSF: 12 TROUBLE SHOOTING NSF 13 DO I HAVE PO’S THAT SPAN MORE THAN ONE FISCAL YEAR? 13 ARE MY LABOR DISTRIBUTIONS CURRENT AND ACCURATE? 13 ARE MY EXPENSES PROPERLY CHARGED? 14 AM I SPENDING UNBUDGETED RESERVES? 14 ARE THERE ANY PENDING TRANSACTIONS THAT NEED TO BE PURGED FROM BANNER SYSTEM? 15 IS THE NSF CONDITION DUE TO ANOTHER INDEX WITHIN MY ORGANIZATION? 16 BUDGET TIPS 16 INDICES MUST STAY BALANCED 16 USE WHOLE DOLLARS 18 ADEQUATE BUDGET MUST BE AVAILABLE TO MOVE 18 CANNOT CREATE NEGATIVE EXPENSE ACCOUNT BALANCES WITH BUDGET ENTRIES 18 NEW CLINICAL REVENUE ACCOUNTS 19 AMOUNTS MUST NET TO ZERO 19 REQUEST PRIOR APPROVAL TO BUDGET ADDITIONAL USE OF CARRY FORWARD 20 GET FAMILIAR WITH LEARN GUIDELINES & UNM MAIN CAMPUS BUDGET WEB PAGE 20 REPORTS THAT HELP WITH BUDGET & NSF 21 BUDGET AT THE INDEX LEVEL 21 QUICK REFERENCE GUIDE 22 PEOPLE 22 WEBSITES 22 OTHER 23 APPENDIX 1- OTHER HELPFUL BANNER FORMS 24 APPENDIX 2-NEW HYPERION REPORT 26   NSF CHECKING WHO AND WHAT ARE AFFECTED BY NSF REJECT? When a Level 5 Organization is in Non sufficient Funds (NSF) status, transactions such as JVs, DP-EZ’s, and Requisitions are rejected pending corrective action by the unit. Specifically, NSF is set to reject in Banner for: 1. Level 5 Organization and Fund Level 3 using I&G funds. 2. Level 5 Organization and Fund Level 3 using unrestricted Research indices. 3. Level 5 Organization and Fund Level 3 using unrestricted Public Service indices including non-endowed foundation indices.. 4. Athletics at Organization Level 6 Note for the HSC:  for the College of Nursing, College of Pharmacy, Health Science Library Informatics Center, and HSC Administration in addition to the Organization Level 5 and Fund Level 3 Banner checks, HSC Financial Services manually checks for NSF status at the index level. HOW DOES BANNER CALCULATE NSF? Banner uses formula below to calculate your budget available for spending.  If a negative number is calculated, you are in NSF.  This means that if there is an error in any of the items in the formula, you may be in NSF inadvertently.  Each part of the formula must generate a correct number for NSF to work correctly.  Total Accumulated Expense Budget        Less: Fiscal YTD Actual          Less: Fiscal YTD Commitments (encumbrances/reservations)     Less: Pending Transactions [This does not include internal PRs]   = Budget Available for Spending TRANSACTIONS SUBJECT TO NSF CHECKING: All documents initiated in Banner, including: - Journal Vouchers - Invoices - Requisitions from LoboMart - Purchase Orders - General Encumbrances - P-card reallocations TRANSACTIONS NOT SUBJECT TO NSF CHECKING: Any feeds into Banner:            - Payroll            - P-card             - Banner tax           - Telecommunications          - Internal Sales Feeds, such as Bookstore, etc. Please note:  transactions that are not subject to NSF checking can place the unit in deficit if there is not enough available budget to fund the transaction.  Reconcile your feeds from Banner monthly. ACCOUNT CODES DO NOT AFFECT NSF Moving budgeted funds from one account code to another within an index or fund level 3 or organization level 5 will never relieve NSF status.  Changes must be made as indicated in this manual. HOW TO TELL YOU ARE IN NSF STATUS INDICATORS OF NSF: • Initiator of document will see an error message while attempting to complete the document if the organization is already in an NSF condition (insufficient budget to fund actual transaction).  You cannot complete DPEZs and requisitions in Banner if the organization is already in an NSF condition.  You can complete JVs if your organization is in NSF.  These JVs, however, will be routed to the NSF Queue.  If all the lines in the JV summary form have a “P” indicator on, they are postable.  An “E” indicator means there is an error, and the JV will not post.  An “N” indicator means NSF and the JV will be routed to the NSF queue. • If the organization spends into a deficit while a document is pending approval, the document will be routed to an NSF approval queue after the regular approval. • Initiator can track document to ensure it posts (FOAAINP) • If document is suspended due to NSF, it will be in the “NSF-Over Budget” queue.   Note that when a JV entry for an index in an NSF fund level 3 is attempted, you receive the following message, and the Status will be “N”. This alerts you to the NSF status.  Banner will not allow you to process JVs or DPIs if an NSF condition exists.     TOOLS TO ASSIST YOU IN CHECKING FOR NSF INCLUDE:  Hyperion Reports can be found at:   - Hyperion Report FOH0003: Budget Availability Detail & Summary Reports. This report can be found in the Finance Production Reports folder. If you query with the Detail option, the report will show you individual pending document numbers that are reserving available balance.  If you select the Department Deficit option, all level 5 orgs that are in NSF will be printed, allowing you to determine which indices are responsible for the NSF issue. To find your level 5 org, if you only know the beginning of the code, put in the beginning, followed by a % sign.  Then select “Find”.  All the level 5 org codes with that beginning will be listed.  Select the correct one.  Here, 997A was selected. Now we are going to generate a listing of funds in deficit for 997A: Pediatrics Level 5.  After you (1)”Select Values” and select from the (2)”Reports Available”, click (3)“Generate Report”.   This is page 6 and 7 of the report.  In this example, you can see that under Fund 3U0007, Org 997A is in deficit at Organization Level 5, fund level 3 for fund 3U0007.    If you select View, and then select Section Catalog, a menu on the left appears. You can then look at the information you ran (in this case, 997A, Level 5) in different formats without re-running the report.  Here is an example of the executive summary report. - Hyperion Report FSH0002: Labor Distribution Report. This report can be found in the Finance Production Reports folder, and will allow you to verify whether the organization labor distributions are current and accurate. - Banner Form FGIBAVL, Budget Availability Status Form – allows you to query by index code or specific Fund/Organization combination and check the available balance at org level 5 and fund. FGIBAVL shows you Available Balance To query, select F7, input the Fund and Organization numbers, and select F8. The fund for this example is 3U0007, a level 3 fund.  This is the one we looked at on pages 6&7 of the FORH0003 report, in the previous example. The Level 5 Organization is 997A, from our original report query.   FGIBAVL, a Banner Form, will show you in one line the available balance at org level 5 for this level 3 fund.  In this case, we are checking on fund 3U0007, shown above and on the 6th and 7th pages of the FOH0003 report used in the above example further above.  You can see that this fund has $1,515 budgeted, and so far this fiscal year has spent $3,189.27.  There are no commitments, so the fund 3U0007 for Pediatrics Level 5 Org (997A) is in deficit spending of  $1,674.27.  - Banner form FGIBDST, Organizational Budget Status Form – allows you to query by index code and check the available balance. FGIBDST shows you  Available Balance for an index or fund. Input the index number and select “next block”.   The index in this example is the same one on pages 6&7 of the FORH0003 report, in a previous example. This gives you an account breakdown.  The expense accounts [-428.44, -1537.98, 308.72, -16.57=1,674.27] add to the same total.   By unchecking the “Include Revenue Accounts” box, this form will give you fund results, as below: Again, the available balance shows the level 3 fund 3U0007 is in deficit by $1,674.27. HOW TO AVOID NSF SITUATIONS PROACTIVE MEASURES THAT CAN BE TAKEN TO AVOID NSF: - Accurately budget within Banner all your current unrestricted indices. - Timely reconcile all indices to verify that expenses are complete and accurate (especially transactions that are uploaded to the banner system bypassing central accounting approval). - Since salaries comprise about 80% of most budget, verify labor distribution and reconcile salary changes on a timely basis. - Process Labor Redistribution changes in a timely fashion. - Review outstanding Purchasing Orders for need and appropriateness. - Process any necessary PO Modifications in a timely manner. - Renew master Purchase Orders on a fiscal year basis. - Liquidate manual encumbrance as soon as transaction has been completed/posted to Banner. [This does NOT happen “automatically”!] -  Budget Reserves amounts that the unit intends to spend in the current fiscal year. - Purge any pending transactions from Banner system that were initiated but are no longer intended to be completed. TROUBLE SHOOTING NSF DO I HAVE PO’S THAT SPAN MORE THAN ONE FISCAL YEAR? Banner looks at the remaining amount on a purchase order and assumes it will be spent in the current fiscal year.  Example: You have a five year purchase order in place for $5,000, and intend to spend $1,000 per year, and only budget $1,000 in Banner.  Banner subtracts the entire $5,000 from your budget, leaving you $4,000 overspent.  Modify multiyear purchase orders with a PO Modification form.  Each purchase order should reflect what is to be spent in the current fiscal year.  Coordinate your efforts with Purchasing.  Your original Purchase Order must be for the full amount to enable Purchasing to avoid incremental purchasing, which is illegal under the state code.  After your original purchase order, for the full amount is in place, then you can modify it to include only the current year portion. ARE MY LABOR DISTRIBUTIONS CURRENT AND ACCURATE? Reconcile your indices monthly.  Labor Distributions can be updated with an EPAF, which you will access through Loboweb.  Once the EPAF is approved and posted, the labor distribution will post correctly for future payrolls.  In order to originate EPAFs, you must have taken EPAF-BAN HRP EP 101 course offered via Learning Central and submitted a BAR named “Originating a Labor Distribution EPAF” to originate an EPAF in Loboweb.  Encumbrances for payroll are adjusted when posted, so you may not see your adjustment immediately. Labor redistributions are made with PZAREDS.   This is how you correct already posted labor that is not in the correct index.  PZAREDS is a Banner form you access from within Banner.  You must have taken the PZAREDS course offered via Learning Central and submitted a BAR named “Department Labor Redistributions” to access PZAREDS in Banner.  Once your PZAREDS is posted, the incorrect transactions will be moved, along with related benefits, to the correct index.  Please note that labor redistributions do NOT impact encumbrances.   ARE MY EXPENSES PROPERLY CHARGED? Reconcile your indices monthly. See the LEARNs posted at http://hsc.unm.edu/financialservices/accounting/learn.shtml entitled, Index Reconciliation Fundamentals, and Intermediate Index Reconciliation for assistance or the Financial Services Support Center under Banner Bytes:  http://www.unm.edu~fssc/bannerbyte.html for assistance. Particularly note: • Banner feeds.  They will post whether you are in NSF or not.  This includes ITS (Telecom) charges.  They can put you into NSF. AM I SPENDING UNBUDGETED RESERVES? Any reserves (funds unspent from the prior year) that you wish to spend in the current year must be budgeted.  If you have a reserves amount budgeted, it will be in account 1901. Even if you have a large actual reserves in account 1900, you should not spend it unless it is budgeted in account 1901.  If you spend unbudgeted reserves, you run the risk of putting your Level 3 Banner fund in NSF. If necessary, submit a budget revision, documenting how you are going to spend the reserves.  To submit a budget revision, you will submit a journal voucher with journal type BD4.  Once this journal voucher is approved and posted, the entry should relieve your NSF status.   ARE THERE ANY PENDING TRANSACTIONS THAT NEED TO BE PURGED FROM BANNER SYSTEM? When calculating NSF, Banner subtracts all outstanding JVs, DPEZs and Purchase Requisitions.  Banner subtracts these whether they are posted or pending.  If you have documents in existence that will never be posted, remove them.  Document to Purge Form to Use How to Purge Journal Voucher FGAJVCQ Record/Delete , twice DPEZ FZADPEZ Record Remove, twice Purchasing Requisition Part 1 FOADOCU Delete or “self deny” the completed purchasing requisition. Note: this is only for pending requisitions that have not received final action in purchasing.  This action can be taken if the document has NOT been converted into a PURCHASE ORDER. http://www.unm.edu/~purch/ Purchasing Requisition Part 2 LoboMart Remove purchase requisition request if not completed for approval routing in Banner.   IS THE NSF CONDITION DUE TO ANOTHER INDEX WITHIN MY ORGANIZATION? If your index is not in NSF, but you are getting NSF indicators, another index within your organization could be the cause.  Check the available balance of your department using Banner Form FGIBDSR, the Executive Summary Form.  This form allows you to query by specific Organization to check the available balance.  If your organization as a whole is NSF, all indices within the organization will be in NSF status.  Discuss the situation with your supervisor. BUDGET TIPS INDICES MUST STAY BALANCED 1) In any BD4 or BDT entry that you prepare, you need to make sure that the indices "stay balanced" on all indices whose budgets will be changed by your JV.  To "stay balanced", the sum of the budget adjustments to the revenue account codes (including 1901) must equal the sum of the budget adjustments to the expenditure account codes for each index.  (As is required when entering original budgets, Revenues must equal Expenditures on every index.) 2)  If you are wanting to increase the overall amount you are allowed to spend on an index, the amounts of both revenue and expenditure budget adjustments to that index will be entered as positive (+) amounts; and the resulting sum of your revenue budget adjustments must equal the sum of your expenditure budget adjustments.  (Much of the confusion that I have encountered when reviewing JV's has to do with initiators wanting to offset positive revenue adjustments on an index with negative expenditure adjustments on the same index, or vice versa, which does not keep the index in balance.)  Conversely, if you are wanting to decrease the overall amount you will be able to spend on an index, the amounts of both revenue and expenditure budget adjustments to the index will be entered as negative (-) amounts; and the resulting sum of the revenue budget adjustments must equal the sum of the expenditure budget adjustments.   Here are a couple of examples:  To increase the overall amount you can spend from an index by using carried forward balance, the JV would be structured like this:         BD4   043XXX  1901   $2,000 (+)        BD4   043XXX  3100   $1,000 (+)        BD4   043XXX 3820   $500  (+)        BD4   043XXX 8060   $500  (+) To decrease the overall amount you can spend from an index if, for instance, anticipated revenue has decreased, the JV would look like this:             BD4  043XXX 07Z0   $100,000  (-)         BD4  043XXX 2000   $  75,000  (-)          BD4  043XXX 21J0   $  25,000  (-)        To move budget from one index to another, here is an example of how the JV might look:         BD4   043XXX 0381 $100,000 (-) (Giving Index)         BD4   043XXX 69Z0 $100,000 (-) (Giving Index)         BD4   043XX1 0381 $100,000 (+) (Receiving Index)         BD4   043XX1 3100 $  50,000 (+) (Receiving Index)     BD4  043XX1 3820  $50,000 (+) (Receiving Index)  In each of these three examples, all indices have "stayed balanced" - the sum of the adjustments made to revenue account budgets equals the sum of the adjustments made to expenditure account budgets on each index.  You also can have a budget revision entry that has only revenue account adjustments or only expenditure account adjustments.  However, in this case, the entries must net to zero when summed.  For example, if you are wanting to reclassify $1,000 of revenue to account 0380 that was originally budgeted to account 0310, the JV would look like this:           BD4 043XXX 0390 $1,000  (-)        BD4 043XXX 0380 $1,000  (+) Similarly, if you are wanting to increase the amount you can spend from account 3820 by reducing the amount you had originally budgeted to 3100, the JV would look like this:    BD4 043XXX 3100 $1,000  (-)   BD4  043XXX 3820 $1,000  (+) In each of these two cases, the indices "stays balanced".   The sum of the revenue adjustments in the first example is zero, and since there are no adjustments to expenditure account codes, the index stays in balance.  Similarly in the second example, there are no revenue adjustments, and the sum of the expenditure adjustments is zero, keeping the index in balance. USE WHOLE DOLLARS 3) All budget entries (BD4 or BDT rule class codes) have to be entered using whole dollars and no cents.  (This rule is also applicable when entering original budgets - no pennies, please!) ADEQUATE BUDGET MUST BE AVAILABLE TO MOVE 4) If you want to move budget from one index to another index, you must first determine if there is adequate budget available that can be reduced on the "giving" index.  The formula for calculating "available budget" on an index is:  Total Accumulated Expenditure Budgets Less Fiscal YTD Actual Expenditures Less Fiscal YTD Expenditure Encumbrances Less Pending Expenditure Transactions.   If you find that there is not sufficient "available budget" to allow reduction of the budget on your "giving" index, you may need to first move charges from your "giving" index to a different index to free up "available budget".          A quick way to ascertain the amount that is available to be given from an index to is to go to Banner Form FGIBDST.  Enter your "giving" index number, and then uncheck the "Include Revenue Accounts" box.  After doing this, then push the "Next Block" button.  The amount at the bottom of the form under "Available Balance" is your "available budget" before any Pending Expenditure Transactions.  Deduct any pending expenditure transactions from the "Available Balance" amount to get to your "available budget" that can be moved to another index.  (There is also a report in Hyperion called:  FOH0003&4 Budget Availability Detail & Summary Reports that can assist you in determining if an index has adequate available budget that can be moved to another index.  An explanation of the features of that report is attached at the back of these tips.) CANNOT CREATE NEGATIVE EXPENSE ACCOUNT BALANCES WITH BUDGET ENTRIES 5) Adjustments to Expenditure account budgets cannot result in negative amounts.  (This is also true when preparing original budgets in the spring - Expenditure budgets cannot be entered as negative amounts.)  If you want to reduce an expenditure budget amount on an index, you need to look first at how much is currently budgeted to that expenditure account code (refer to Banner form FGIBDST).  For example, if you have only $1,000 budgeted to account 3100 on one of your indices, you cannot enter a BD4 JV that reduces the account 3100 budget on that index by $1,500.  Doing so would cause the budget for account 3100 to reflect a negative amount ($-500.00), which would cause your JV to be disapproved.  If you have nothing currently budgeted to an expenditure account code in an index, you should not submit a JV that reflects a reduction to that account code on that index. Additionally, actual expenditures, encumbrances, and pending transactions reduce available budget at the account code level for each index.  If on account code 2000 of one of your indices, you have $100,000 budgeted, and you have $15,000 in Fiscal YTD Actual charges and $85,000 in Encumbrances, the budget to account code 2000 cannot be reduced because available budget for this account code on this index is already zero ($100,000 less $15,000 less $85,000 = $0). NEW CLINICAL REVENUE ACCOUNTS 6) Clinical revenues should be distributed using accounts 0381 (formerly 0311), 0391 (formerly 0321), 0341 or 0351. If distributing FOM dollars that were originally generated in account 0380 (formerly 0310) or 0390 (formerly 0320) from one FOM index to another FOM index (where the funds associated with each index both roll up to Level 2 Fund 3U41 - HU UPA), the appropriate account code to use for this distribution would be either 0381 (formerly 0311) or 0391 (formerly 0321). If distributing UH dollars that were originally generated in account 0340 from one UH index to another UH index (where the funds associated with each index both roll up to Level 2 Fund 3U42 - HU UNMH), the appropriate account code to use for this distribution would be 0341. The rationale behind using 0381, 0391, and 0341 as directed above is that this follows the initial guiding principle of redistributing these types of funding from Department to Division (or Division to Division), and keeps the funding source true to its origin for reporting purposes.  These clinical revenue distribution entries may cross funds when applicable. Here is an example that demonstrates the above requirements:         BD4  043XXX   0381   $25,000  (-)  (Giving Index)         BD4  043XXX   69Z0   $25,000  (-)  (Giving Index)         BD4  043XX2    0381  $25,000  (+)  (Receiving Index)         BD4  043XX2    3100  $25,000  (+)  (Receiving Index) In this example the sum of the amounts increased and reduced in 0381 is zero, the amounts increased and reduced in the expense accounts is zero,  and the total amounts increased and reduced in the JV equals zero ($-50,000 + $+50,000 = $0). AMOUNTS MUST NET TO ZERO 7) When budgeting allocations from one index to another, the amounts "given" from one index, using account codes beginning with "16" (1600, 1610, 1620, 1660, etc.) should be offset dollar for dollar with amounts "received" into another index using the same "16XX" account codes, so that all entries to these respective account codes within your JV will net to zero. Here is an example that demonstrates the above paragraph's requirements:         BD4   043XXX  1660   $10,000  (-)  (Giving Index)         BD4   043XXX   3100  $10,000  (-)  (Giving Index)         BD4   043XX1   1660   $10,000 (+)  (Receiving Index)         BD4   043XX1   3820   $10,000 (+)  (Receiving Index) In this example, if you add the $-10,000 reduced on index 043XXX account 1660 to the $+10,000 increased on index 043XX1 account 1660, the sum of these 1660 adjustments within the JV equals zero.  REQUEST PRIOR APPROVAL TO BUDGET ADDITIONAL USE OF CARRY FORWARD 8) This year (FY09), the School of Medicine has required departments to request prior approval before budgeting additional use of carry forward.   Departments are asked to justify their requests for budgeting use of carry forward that wasn't budgeted (or allowed to be budgeted) during budget season in April.   The request should be in a memo or e-mail and should identify:   the specific indices involved, the amount of carry forward by index that you think your department definitely will spend in FY09 if the request is approved, the reason you need to spend the carry forward (in other words what the carried forward monies will be used for), and why the spending that you are requesting can't be spent from current year revenues.  We are not going to be able to allow all carried forward balances to be budgeted, and therefore are asking that you look carefully at all of your indices to see if there are other options for acquiring what you need in FY09 without additional budgeting of carry forward. GET FAMILIAR WITH LEARN GUIDELINES & UNM MAIN CAMPUS BUDGET WEB PAGE 9) Financial Services has recently produced a document discussing allocations, transfers, and the movement of reserves using account 1903.  (LEARN Journal Voucher Guidelines for Reserves, Allocation, and Transfer Entries presented July 2008.  This document can be found on the Unrestricted Accounting, HSC Website: http://hsc.unm.edu/financialservices/accounting/learn.shtml or at the Financial Services Support Center’s (FSSC) website under Banner Bytes:  http://www.unm.edu/~fssc/bannerbyte.html . Choose the Word option.)  It discusses in detail the procedures you need to follow when preparing any of these types of JV's.  It is very important for you to become familiar with the rules and procedures contained in this document because the rules contained therein will need to be followed when doing your mid-year projections in January and your FY10 budgets later in the spring. 10) On the UNM Main Campus Office of Planning, Budget, & Analysis web site, located at http://www.unm.edu/~budget/, select the SOP area in gray.  This will show you many current budgeting standard operating procedures. To obtain more detailed instructions on the use of BD4 and BDT entries, see the LEARN Journal Voucher Guidelines for Reserves, Allocations & Transfer Entries posted on the Unrestricted Accounting and Reporting Website at http://hsc.unm.edu/financialservices/accounting/learn.shtml or at the Financial Services Support Center’s (FSSC) website under Banner Bytes:  http://www.unm.edu/~fssc/bannerbyte.html . Choose the Word option.) This Manual goes into considerable detail explaining the guidelines for making these entries.   REPORTS THAT HELP WITH BUDGET & NSF FOH0003&4 Budget Availability Detail & Summary Reports: Purpose: To provide summary and detail  budget availability information that can be used to analyze and troubleshoot an organization’s budget.  Ties to FGIBAVL in Internet Native Banner. Updates on NSF calculation for FY09: There are more than 80 funds (unrestricted research, unrestricted public service, instruction & general, and athletics) that are now set to reject for budget availability.  The calculation first looks at the organization level 5, then fund level 3 to calculate budget availability. Report Descriptions: Executive Summary Report: Grouped by organizational level 3 (if chosen), then by organization level 5, then fund, then organization level 6 to provide subtotals of budget availability that will tie to BANP. Department Summary Report: Grouped by organization level 5, then fund, then lower level organizations (6, 7, and 8) to provide slightly more detail than the Executive Summary report.   This report is written mainly for very large departments that would not need to immediately refer to a detailed report for analysis. Department Detail report: Grouped by organization level 5, then fund, then lower level organizations(6,7,8) then index, then account code to provide as much detail as possible for budget availability analysis.  Primary purpose of this report is to provide detail of what is in the “unposted commitments” column, as that information is not available through any form in Internet Native Banner. Department Deficit Report: Same as the Department Detail Report, but sorted by remaining balance in descending order, so that those indices within an organization/fund that are in deficit would show first.  This can be useful when troubleshooting an insufficient funds scenario within an organization. BUDGET AT THE INDEX LEVEL Each index from which you plan to spend funds should have those expenses and a corresponding revenue amount budgeted in that index.    QUICK REFERENCE GUIDE PEOPLE Budgeting Questions: Main Campus: …………………………………………………………………………………………………… 277-6465 HSC Campus: ………………..………………………………………………………………………………….. 272-2885 Unrestricted Accounting Questions: Main Campus: …………………………………………………………………………………………………… 277-2018 HSC Campus: …………………………………………………………………………………………………… 272-6264 Payroll Encumbrance Questions: Financial Services Support Center:  ……………………...………………………………………..……… 277-3457 EPAF Questions: HRPR Support Center …………………………………………………………………………………………. 277-4777 WEBSITES HSC Budgeting:  http://hsc.unm.edu/about/budget/  Main Campus Budgeting:  http://www.unm.edu/~budget/ Unrestricted Accounting HSC:  http://hsc.unm.edu/financialservices/accounting/ Unrestricted Accounting Main:  http://www.unm.edu/~gacctng/ Contract & Grant Accounting HSC:  http://hsc.unm.edu/financialservices/postaward/ Contract & Grant Accounting Main:  http://www.unm.edu/~cgacctng/ Financial Services Support Center:  http://www.unm.edu/~fssc/index.html Fast Info:  http://fastinfo.unm.edu/v0508/index.php   OTHER LEARN Material: HSC Campus: http://hsc.unm.edu/financialservices/accounting/learn.shtml (includes LEARN Schedule of upcoming topics , past manuals  and past Power Point presentations) Main Campus: http://www.unm.edu/~fssc/index.html (select “Banner Bytes” on the left.  You will find many presentations, including the LEARN presentations) Financial Services Support Center:  [ http://www.unm.edu/~fssc/index.html ] Banner Bytes- contains many helpful Presentations, including all the LEARN presentations Job Aides-  helpful  “how to’s”, for completing Finance specific tasks Participant Guides- the most current guides used in EOD classes Forms- direct links to Financial Services Forms ITS Help:  http://its.unm.edu/support/index.html  this site lists phone numbers for help desks on Main Campus, HSC Campus, the Hospital, and others.  It has a direct link to Fast Info.  It lists several other ways to get technical support, all on the main page.   APPENDIX 1- OTHER HELPFUL BANNER FORMS - Banner Form FGIBDSR, Executive Summary Form – will show budget to actual and availability in a variety of different ways by index, fund, org, etc. If you check the “Includes Revenue Accounts” box (see below), you can see your budget and adjusted year to date activity for revenue and reserves accounts.  You can drill down to get detail on this page. Fund 3U0007 [including revenue accounts]:   It is apparent that if the unbudgeted amount in 1900 were budgeted, this would take the Fund out of deficit.  Remember, that unless budget forward is budgeted, you cannot spend it.   If you uncheck the “Includes Revenue Accounts” box (see below), will query only the expenses for budgeted expense.  You can see clearly here that this index is in deficit by $1,674.27; the Adjusted Budget less YTD Activity less Commitments amount, show in the Available Balance column. Fund 3U0007 [not including revenue accounts]:   Please note that results are not always immediately returned as this form requires a lot of resources.   APPENDIX 2-NEW HYPERION REPORT At time of this manual completion, this report was not published to the Finance Production folder, but it should be published soon.  The name may change slightly.  This report is specifically designed to help departments see and analyze NSF situations. The first screen allows you to select an organization code and process the report:     The first page of the report is below.

Account Code Primer

Presenter: John Brandt
Date: 12-12-2008

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  Account Code Primer   Presented by John Brandt 12/12/08   prepared by Terry Shoebotham Business Management Specialist In collaboration with: HSC & Main Campus Unrestricted Accounting HSC & Main Campus Contract & Grant Accounting Property Accounting  (277-7715   plantfund@unm.edu) Tax Accounting  (277-2018) Purchasing  (277-2036)     TABLE OF CONTENTS CLARIFYING THOSE CODES 3 CLASSIFYING EXPENSES – THE GUIDING PRINCIPLES 3 IS THE EXPENSE ALLOWABLE? 3 University funds may not be used for the following types of expenditures. 3 IS THE EXPENSE “FACILITIES &ADMINISTRATIVE EXPENSE EXCLUDABLE”? 4 CORRECT OPERATING LEDGER CATEGORY? 4 Where to find Account Code Lists 5 Basic account structure 6 FREQUENTLY MISUSED ACCOUNT CODES 7 SUPPLY OR SERVICE?  THE ANSWER GUIDES THE ACCOUNT CODE SELECTION 7 PLANT MAINTENANCE OR A CAPITAL IMPROVEMENT? THE ANSWER GUIDES THE ACCOUNT SELECTION. 8 COMMON ERRORS 9 3189-COMPUTERS 9 3150-COMPUTER SUPPLIES AND SERVERS 9 EQUIPMENT- WARRANTY OR MAINTENANCE? 9 SUPPLY OR SERVICE? 9 TAXATION RELATED: 10 Foreign Students, Visitors, Vendors 10 Moving Expense 10 PROPERTY ACCOUNTING PCARD REQUIREMENTS 10 MAINTENANCE, REPAIR, OR RENOVATION? 10 GIFTS/SOUVENIRS/ADVERTISING 11 ITEM TEXT AND BUSINESS PURPOSE- BE DETAILED AND SPECIFIC 11 YOU MAKE THE CALL 12 APPENDIX 1: ACCOUNT CODE DEFINITIONS AND USAGE 20 APPENDIX 2: PROPERTY ACCOUNTING 25 LIBRARY ONLY ACCOUNTS: 25 GREATER THAN OR EQUAL TO $10,000 EQUIPMENT 25 PROPERTY ACCOUNTING ACCOUNT CODE DEFINITIONS 25 APPENDIX 3: OPERATING LEDGER CATEGORIES 29 APPENDIX 4: FOOD ACCOUNTS 30 APPENDIX 5: YOU MAKE THE CALL ANSWERS 31   CLARIFYING THOSE CODES If you have looked at the UNM Chart of Accounts lately, you noticed that there are a lot of expense account codes.  During fiscal year 2008, 291 codes, not including sub award or payroll codes, were used to categorize items purchased by UNM.  You are expected to select the most appropriate code for each expense you oversee.  This is not always easy.  There are 50 supply codes.  In the Travel area, there are 17 codes, of which ONE is best for any given transaction.  In an effort to make your work easier, we are going to explain some guiding principles for selecting the most appropriate expenditure account code.  These principles will help you select a code that will usually result in approval by Financial Services. We are also going to review and practice using these principles, particularly in regard to some of the most commonly misused codes.  If you learn to correctly use these guiding principles you will significantly reduce the number of denied documents you experience. CLASSIFYING EXPENSES – THE GUIDING PRINCIPLES IS THE EXPENSE ALLOWABLE? UNM Business Policy 4000 – Allowable and Unallowable Expenditures, explains what is allowable and unallowable.  This is found at http://www.unm.edu/~ubppm/ubppmanual/4000.htm.  What follows is a brief summary to assist you with some of the most common questions that arise.   UNIVERSITY FUNDS MAY NOT BE USED FOR THE FOLLOWING TYPES OF EXPENDITURES. University funds may NOT be used to pay for the maintenance and upkeep of privately owned vehicles, such as insurance, fuel, tune-ups, lubricants, tires, licenses, and other repairs, even though these vehicles may be used for University business. The employee may, however, be eligible for mileage allowance reimbursement under the University's travel policy The purchase of personal gifts, including but not limited to flowers and other gifts expressing sympathy, bereavement, or congratulations to faculty, staff, and students IS PROHIBITED, unless approved by other University published policy (for example, employee service awards). University funds may NOT be used to purchase holiday decorations for University offices and buildings. The purchase of office refreshments (including coffee makers, food and beverages) IS PROHIBITED, except when the refreshments are to be consumed primarily by guests of the University or at business meetings. Entertainment of University employees (for example, meal expenses), other than pursuant to the University's travel policy, IS PROHIBITED. Exemptions are allowed when the function is a hospitality event that includes both University employees and invited guests of the University. In accordance with Internal Revenue Service (IRS) regulations, all requests for reimbursement of hospitality expenditures or requests for payment of invoices must be accompanied by a list of the individuals attending the function. For functions attended by more than twenty (20) people or open to the public, a description of the function and definition of the guests invited is sufficient. The purchase of alcoholic beverages IS PROHIBITED except when incurred in the performance of University business such as a hospitality event for guests of the University. When alcoholic beverages are served on campus, the function must be approved, in advance in writing by the President. PAYMENT OR REIMBURSEMENT FOR THE PURCHASE OF ALCOHOLIC BEVERAGES SHALL NOT BE MADE FROM INSTRUCTION & GENERAL APPROPRIATED FUNDS OR CONTRACT AND GRANT FUNDS. When alcoholic beverages are served on campus, University restrictions on location and student participation must be complied with. The purchase of insurance coverage which replicates University insurance (for example, risk management coverage of University equipment) IS PROHIBITED. IS THE EXPENSE “FACILITIES &ADMINISTRATIVE EXPENSE EXCLUDABLE”? The University is required to separately track  “F&A Excludable” expenses for accounting purposes.  Facilities and Administrative expenses are those expenses that, while allowed by UNM Policy, are not allowed as an expense when UNM calculates Federal F&A rates every 4 years.  UNM must segregate these expenses so they can be removed from the F&A calculations when this rate is calculated.  Expenditures that are allowable by UNM Policy but are solely promotional are F&A Excludable. [See Federal Circular A-21 for a more detailed explanation.]  If you are unsure whether an expenditure is F&A Excludable, call your accountant or fiscal monitor and ask.  Account Purpose 31B0-Food F&A Excludable Alcoholic beverages.  Food expenses for entertaining, fund raising, and marketing.  Student Activities and Alumni Expenses. 37Y0-Supply Costs F&A Excludable Supplies used for promotional activities. 39Y0-Travel F&A Excludable Travel associated with lobbying, entertainment. 6350-Promotional Exp F&A Excludable Gen Promotional items, gifts, and the costs of advertising and public relations designed solely to promote the University. 69Y0-Professional Service F&A Excludable Services purchased for F&A excludable activities or items. CORRECT OPERATING LEDGER CATEGORY? Just a few categories are used to organize the financial information contained in the Hyperion Operating Ledger reports: On Summary Reports individual account codes are categorized as either Revenue or Expenses, while Detail Reports organize account codes under the three categories of Revenue, Salary Expense and Other Expense.  On both reports, every account code that has financial activity during the period selected will be listed. For the purposes of this Primer, the remainder of our discussion will focus on account codes categorized as “Other Expense, or as “Operating Expense Other” (as on the ePrint Account Hierarchy Report).  Principal subcategories used include: Supplies, Travel, Student Costs, Research Costs, Patient Care Costs, Communication Charges, Services, Plant Maintenance, Utilities, Capital Expenditures, and Other Expenses. Within each of these subcategories fall specific account codes. Generally, for contracts and grants, the appropriate account code to use will be the one containing your approved budgeted. A Guiding Principle is this: Choose an account code that falls under the most appropriate category.  If your expense involves meals purchased for a business meeting attended by non-UNM employees, and the purchase was made by an employee while traveling, the code you use should be under the Travel heading.  If the expense involves the same type of business meeting, but is a purchase for a local business meeting, the expense should NOT be under Travel, but rather under Supplies.  Under Travel you will find code 3860-Bus Meals and Hospitality Gen.  Under Supplies you will find code 31A0-Bus Food-Local.  The best way to decide which account code to use is by becoming very familiar with the Account Code structure as contained in the Account Hierarchy Report (and other sources listed below) and then following the guiding principle.  If the purchase is associated with travel, it belongs there.  If it is not associated with travel, it belongs under supplies.  If the purchase is a service (having brochures bound for you) rather than a good (buying the paper used to print brochures) it will belong under the Services subcategory. Operating Ledger  Categories and helpful hints can be found in Appendix 3. WHERE TO FIND ACCOUNT CODE LISTS The Operating Ledger Account Code Definitions shows all the active accounts at UNM, and gives a definition and usage for each account. To view or print this list, go to http://www.unm.edu/~gacctng/resources/OpLegAcctDef 6-23-08.pdf .  The  web site at  http://www.unm.edu/~gacctng/  has a list of “frequently used account codes”.  For most of your needs this list will suffice.  It is significantly shorter, and contains definitions for the accounts listed. You can obtain a list of all accounts codes by running ePrint report FGRACTH.  This report is found by signing into ePrint, going to the fin banp – Finance Banner – Production (banp) directory, and selecting FGRACTH from the report list in the small drop down box at the bottom of the page.   This report does not give a definition or usage for the accounts. BASIC ACCOUNT STRUCTURE Note that income accounts begin with a zero.  Regardless of the name, they are not to be used for expenses. First Digit of Account Code Type of Account 0 Income 1 Income &Transfers 2 Labor expenses 3 Supplies & Travel 4 Student and Research Costs 5 Patient Care Costs 6 Communication Charges and Services (See Services, below) 7 Plant Maintenance (i.e.: repair, maintenance, painting. Frequently a type of service.) 8 Other Expenses, Special Contract & Grant Expenses 9 Capital, Bond, and non-cash expenditures Services are something that is done for your department, for a fee.  They may include a “goods” component, but primarily are not a “thing”.  An example would be printing services.  Yes, you end up with printed materials, but the primary thing purchased is the service of printing the paper, not the paper.  Difficulty is frequently encountered in this area.  If you are in doubt, call your accountant or fiscal monitor, explain the situation, and let them help you choose an account. FREQUENTLY MISUSED ACCOUNT CODES Supplies  3100-Office Supplies Gen Includes the cost of paper products, writing materials, and miscellaneous supplies used in administrative office functions, not for resale.  Consists primarily of consumable materials, but also includes inventory of low-cost office tools, such as staplers. VERY FLEXIBLE.  This account is often used as a Pcard default account. 3140-Computer Software Gen Includes software on disks, licensed, or downloaded that are required to operate in-house computers. Most computer software is expensed here.  The only exception would be extremely large software purchases, which cannot be considered a Supply, but because of their size and length of life, must be expensed under the Capital Expenditure Heading.  3150-Computer Supplies & Servers <$5,001 Includes computer and printer accessories, peripherals, and printers under $5,001, such as monitors, surge protectors, mice, tablets, printer paper, toner.  Includes computer servers less than $5,001.  If the cost is above $5,001, see Capital Expenditures heading. 3189-Computers < $5,001 Computers, such as laptops and PC desktops, with a unit cost less than $5,001.  Note: excludes servers and printers, and monitors if itemized separately. When coding the purchase order, computer systems should, if possible, be broken down into their individual components.  If the charges for the monitor and other accessories are stated separately, then these charges must be coded to account 3150.  However, if the systems cannot be broken down and the cost is above $5,001, see Capital Expenditures heading. 3180-Non Capital Equipment <$5,001 Use for unrestricted funds. Equipment with a per item cost less than $5,001.  Examples: Chairs, Bookshelves, paper shredders, band instruments, file cabinets. SUPPLY OR SERVICE?  THE ANSWER GUIDES THE ACCOUNT CODE SELECTION Supply:  We bought the materials. Example- we purchased special paper, glue, and fasteners to create non-promotional brochures Use: 31G0-Binding Supplies Gen  Materials used to hold together leaflets, manual etc… OR 3100-Office Supplies Gen OR Other supply account used by your department Service: We paid someone else to do the job Example- We paid Kinkos to print and/or bind our brochure Use: 6350-Promotional Exp F&A Excludable Gen  Used when the brochure was designed solely to promote the university OR 6370-Printing/Copying/Binding Gen The cost of all non-promotional printed forms and documents.  Includes tickets and programs for athletic events or stage performances, art show catalogs, research bulletins and journals, student publications, mailers, calling cards, stationery, receipt forms, and other printed material.  Also includes any associated binding costs. OR Other appropriate service account used by your department Other Services 63A0-Conference Fees Gen  Fees paid to attend conferences. 63A1-Event Fees Fee paid to lock in a performance or event.  Example: Maxwell Museum event.  (NOT the fee paid to attend a conference.) 70C1-Equip Warranties/Service Contracts  Equipment Warranties & Service Contracts for Equipment. 70D0-Equipment Repairs Maintenance Gen  The cost of repairing and maintaining UNM equipment. PLANT MAINTENANCE OR A CAPITAL IMPROVEMENT? THE ANSWER GUIDES THE ACCOUNT SELECTION. Plant Maintenance: Routine replacement of worn items, even if expensive Example- We are replacing all the electrical wiring in our building for $250,000. [It is replacement of a worn or obsolete item.  It costs less than $500,000.] 70xx accounts.  Call Property Accounting if unsure of exact account. Capital Improvement: New equipment or renovations that are expensive Example- We are constructing a $1,000,000 addition to our building, significantly expanding its size.[It is a new item.  It costs more than $500,000] 9xxx accounts.  Call Property Accounting if unsure of exact account. COMMON ERRORS This section provides examples we see of common errors in account code usage. 3189-COMPUTERS A department purchased a desktop computer system for $4,000.  The entire computer system was expensed under account code 3189.  Only the CPU should have gone to 3189.  The monitor, mouse, and keyboard should have been expensed under 3150.  3150-COMPUTER SUPPLIES AND SERVERS A department purchased, for $5,000, an entire computer system which included a printer and a palm pilot for the department head.  Everything except the palm pilot was expensed under account code 3189.  The palm pilot was expensed under account code 3150.  Only the CPU should have been expensed to account code 3189.  The monitor, mouse, keyboard, printer, and palm pilot should all have been expensed under account code 3150. EQUIPMENT- WARRANTY OR MAINTENANCE? 70C1-Warrantee or Maintenance agreement.  CONTRACT. 70D0-Repair.  Sporadic calls for repair of broken or malfunctioning equipment.  NO CONTRACT. SUPPLY OR SERVICE? A department purchased 5 boxes of paper from the company that designed their department logo and expensed them to 69Z0-Other Professional Services, General.  The paper is a supply, and should not be expensed to a service account. A department purchased a new department logo design, ands expensed the cost under 3100-Office supplies General.  The logo design is a service, and should not be expensed to a supply account. Most basic supplies are charged to 3xxx.  Most services are charged to 6xxx.  Services require an SPQ [Service Provider Questionnaire, available at http://www.unm.edu/~gacctng/forms.html] if the vendor is not a Universal Service Provider. To find out if a vendor is a designated Universal Service Provider (USP), use Banner form FTIIDEN.  You can: •  type in the vendor ID and query it. • Click the Web Xtender icon. • If the SPQ form is there, then it is an approved USP. • Double click on the SPQ document to review it. If relying on a Universal SPQ, you MUST include the following statement in the Business Purpose/Detailed Item Description field when completing your requisition in LoboMart:  “The vendor has been approved as a Universal Service Provider, and to my knowledge there is no conflict of interest per Policy 4325, Section 3.” TAXATION RELATED: FOREIGN STUDENTS, VISITORS, VENDORS If you have a transaction involving a foreign student,  visitor or vendor, you must use one of the following account codes. These account codes flag the right review for withholding purposes: Travel 3850,4682,4683 Awards 4021 Participant Fees 40A1 Stipends 4661 Honoraria 63E1 Services 63V1 Royalties 8081 Sub-Contracts 88XX(C&G only) MOVING EXPENSE Moving Expenses must be expensed using account 38L0-New Employee Moving Expense Gen.  House hunting is a moving expense that cannot be expensed to other Travel Accounts.  When in doubt, ask your accountant or fiscal monitor.  PROPERTY ACCOUNTING PCARD REQUIREMENTS When purchasing a computer with a Pcard, Property Accounting requires certain information regarding the computer purchase. To supply this information please use the Property Accounting Computer Purchase Form. This form may be found on the Purchasing website at: http://www.unm.edu/~purch/pcardtrain/computer.html.  This web form is automatically forwarded to Property Accounting so that an equipment tag may be issued for the computer. Problems or questions with the form?  Call Purchasing at 277-2036. MAINTENANCE, REPAIR, OR RENOVATION? When one company is hired to make significant changes in a physical space, you have a renovation.  When a company is hired primarily to make a worn space look better by applying new paint or replacing worn carpets, you have maintenance.  When damaged areas are being repaired, such as replacing panes on a broken window, or replacing sagging ceiling tiles caused by a roof leak, you have a repair.  If you are in doubt about the correct account call Property Accounting, explain the details of your situation, and ask them for the correct account. GIFTS/SOUVENIRS/ADVERTISING Expenses of this type must be incurred only to promote the University.  Gifts cannot be for staff or faculty, or outside speakers, even if the gifts benefit the University.  As well, I&G funds can never be used to purchase gifts, souvenirs or advertising. If any of these items is purchased, it will get particular scrutiny.  Be very specific in your item text.  Explain how the items purchased promoted the University.  These items belong in an F&A Excludable account such as 6450 or 37Y0.  Floral arrangement for graduation belong in 37Y0. ITEM TEXT AND BUSINESS PURPOSE- BE DETAILED AND SPECIFIC Many documents are disapproved not because you selected the wrong account code, but because your item text or business purpose did not sufficiently explain the transaction to support your account code choice.  The guiding principle here is, Explain the transaction!  Who (students, faculty, staff, names, titles, UNM or not)  What (event, activity, purchase, contract)  When (date)  Where (on campus vs off campus)  Why (business purpose) Provide original Banner document numbers and post dates for any transactions you are moving elsewhere. Provide your name and phone number. Your document will NOT be denied if you give more information than is needed.  It can be denied if you do not give enough. For example, you have submitted a DPI for an Oriental rug purchase for $2,000.  You choose account 31T1-Sets and Scenery.  Your business purpose reads, “Oriental rug”. This DPI is probably going to be questioned, and may be denied during that process.  If, however, you had written in the business purpose area, “Oriental rug budgeted for The King and I theatre production given by Dr. Howser’s ABC’s of the Theatre class and used as Scenery in the play” your DPI will probably be approved without any questions or delays.  This also holds true for item text when moving expenses with a journal voucher.  Be specific and detailed. YOU MAKE THE CALL 1) Dr. Smith had an advertising brochure produced for his office.  He hired Marty Johnson of ABC Printing to assist with the design of the document and produce it.  You just received  Marty’s invoice, which reads:         What account or accounts could you use to expense these charges?  Why? A) Account 3100-Office Supplies General.  We purchased paper with printing on it.  This is a supply B) Account 6370-Printing/Copying/Binding Gen.  We purchased the design of the brochure.  This is a service that includes printing and binding. C) Account 6350-Promotional Expense F&A Excludable.  This is a service for an F&A excludable item D) Account 55Z0- Other patient supply costs.  These brochures are for patients, so they go in the Patient Care Cost category.   2) Popejoy had an educational brochure produced for elementary school teachers to advance cultural awareness of their program.  He hired VanJohnson Designs, Inc.  You just received their invoice, which reads:         What account or accounts could you use to expense these charges?  Why? A) Account 6350-Promotional Expense F&A Excludable.  This is a service for an F&A excludable item B) Account 6370-Printing/Copying/Binding Gen.  We purchased the design of the brochure.  This is a service that includes printing and binding. C) Account 3100-Office Supplies General.  We purchased more paper($12,000) than design($2,500).  This is a supply. D) Account A801-Inventory Other.  We got a lot of brochures, so they are inventory now.   3) Dr. RedMond needed surveys for his patients.  He hired Ralph Getty to design the surveys and had them printed in-house. Ralph’s hand written invoice, which Dr. RedMond just gave you, reads:     What account or accounts could you use to expense these charges?  Why? A) 20P0-Temporary Salary Gen.  Ralph is an individual, not a business.  He was temporarily employed by UNM to design this survey. B) 0280-Testing Fees General.  These surveys will be used to test patients for various diseases. C) 3100-Office Supplies General.  This category can be used for all office supply purchases. D) Account 69Z0-Other Professional Services.  Ralph provided a service by designing the brochures.   4) You are doing your PCard reallocation in Banner. (FWAINVT). You are reallocating a purchase for your department that totaled $3,527.32.  This order was for reams of paper ($2,006.00), toner cartridges for several printers ($892.17), and a new copier ($629.15).  The paper will be used for the various printers and the copier.  Your routine work includes making copies of forms, instruction sheets, and brochures for various Doctors in your department. What account or accounts could you use to expense these charges?  Why? A) Account 3100-Office Supplies General.  These are all office supplies.  This is the most appropriate category. B) Account 3100-Office Supplies General for the paper and Toner.  Account 3150-Computer Supplies and Servers <$5,001 for the copier. C) Account 3100-Office Supplies General for the paper and Toner.  Account 9530-Site Improvement General for the copier.  The copier greatly improved our work site. D) Account 3100-Office Supplies General for the paper and Toner.  Account 3180-Non Capital Equipment <$5,001 for the copier.   5) Your department maintains records for copier usage and charges the users’ index based on the number of copies made each month at 5 cents/page.  4,000 copies were made by various departments this month. What revenue account or accounts could you use for these charges?  Why? A) Revenue account?  I will credit 3100-Office Supplies General for the cost, to reduce the cost of the paper and toner we used to make these copies. B) I will credit the new Internal Service center revenue account, 0699-Miscellaneous Services. C) I will credit account 08Z0-Miscellaneous Gen. for this small amount of revenue. D) I will credit 37Z0-Other supply Costs General, because it is currently overspent and we still need to purchase more supplies using this account. What expense account or accounts could you use to expense these charges?  Why? A) I will expense these copies to 3100-Office Supplies General.  This is paper and toner. B) I will expense these copies to 69Z0-Other Professional Services General.  We provided a service to the other departments by making these copies for them. C) I will expense theses copies to 63C0-Copying Gen.  We are selling copies. D) Our department uses the barter system.  The copies are offset by some used furniture they gave our department last month.  No entry is required.   6) Your department purchased a desk top computer with a monitor, keyboard, and mouse.  At the same time you also purchased from the same vendor two new printers.  The invoice is below:           What account or accounts could you use to expense these charges?  Why? A) I will use 9020-Computer Hardware for all of these charges. B) I will use 3189-Computers for the computer, and 3150-Computer Supplies and Servers for the rest of the invoice items. C) Since this is one purchase, I will use 3189-Computers for the entire invoice. D) I will use 3180-Non Capital Equipment for all the charges since the total is under $5,001.   7) Your office is being renovated.  An outside company has been hired to tear down two walls, replace six windows, two of which are cracked, and replace the worn carpet with new carpet.  They are also supplying 3 new workstations, at a cost of $4,500 per station.  Each station includes cubicle walls($1,970), two upper($800 each) and one lower($450) cabinet, a desk surface ($300), and a chair($180).  Their bill follows:           What account or accounts could you use to expense these charges?  Why? A) I have no idea, so I will guess that 9220-Building Improvement Gen is correct.  It sounds pretty good… B) I have no idea, so I will divide it all up, as follows: Labor to: 69Z0-Other Professional Services General The rest to: 9000-Equipment/Furniture >$5,000  (If I’m wrong, maybe no one will notice…) C) I have no idea, so I called my friend in another department that had a similar expense last year.  We decided: Labor, windows, carpet to 7000-Plant Repairs Furniture to 9000-Equipment/Furniture >$5,000 D) I have no idea, so I called Property accounting, and  I am expensing it the way they told me to: Labor, windows, carpet to 7000-Plant Repairs Modular furniture to 9000-Equipment/Furniture >$5,000 Office chairs to 3180-non capital equipment <$5,001   8) Your department purchased a piece of equipment.             What account or accounts could you use to expense these charges?  Why? Account 9000-Equipment /Furniture >$5,000, because this is capital equipment, and the entire amount is capitalized. Account 9000-Equipment/Furniture for everything except the Warranty.  The Warranty goes in account 70C1-Equipment Warranties/Service Contracts.  Warranties are not capitalized. This is nasty.  The Equipment goes in 9000-Equipment/Furniture >$5,000, the Warranty in 70C1-Equipment Warranties/Service Contracts, the Shipping in  31D0-Freight In-Bound, the installation in 63X0-Technical Services Gen, and the training in 63T0-Contract Services General. One look at this and I got a headache.  I went home sick and my supervisor did something with it.  Wherever it went, it is not my fault!   APPENDIX 1: ACCOUNT CODE DEFINITIONS AND USAGE University of New Mexico Most Frequently Used Account Codes General Accounting Web site where located: http://www.unm.edu/~gacctng/ 07ZZ Reimbursements from Employees:  This revenue is used when funds are received from an employee and in some cases from other sources but needs to be applied against an expenditure via a Journal Voucher. Must have a zero balance at the end of the fiscal year. 08Z0 Miscellaneous Revenue Gen: Revenue not specifically identified in a separate account code. 3100 Office Supplies General:  The cost of paper products, writing materials, and miscellaneous supplies used in administrative office functions, not for resale. Consists primarily of consumable materials, but also includes inventory of low-cost office tools, such as staplers. 3110 Books Periodicals Gen:  Magazines Books, reference materials. Does not include textbooks or library books. 3131 Video Tapes:  Includes VHS or DVD media. 3140 Computer Software Gen:  Includes software and disks that are required to operate in-house computers. 3150 Computer Supplies & Servers <$5,001:  Includes computer and printer accessories, peripherals, and printers under $5,001, such as surge protectors, mice, tablets, printer paper, and toner. Includes computer servers less than $5,001.   3160 Copier Supplies Gen:  Includes paper, toner other supplies used to operate a copier 3170 Custodial Supplies Gen:  Includes janitorial and sanitation supplies. 3180 Non Capital Equipment <$5,001:  Equipment with a per item cost less than $5,001. Examples: Chairs, Printers, Bookshelves   3185 C&G Non Capital Equip $1,000-$5,000:  C&G Non-computer equipment with a per item cost between $1,000 and $5,000. For Restricted Fund use. 3189 Computers <$5,001:  Computers, such as laptops and PC desktops, with a unit cost less than $5,001. Note: excludes servers and printers. 31A0 Business Food-Local:  Food consumed primarily by guests of the University, or at a business meeting, where food is incidental to the meeting. Food recorded in this account code is not associated with travel. 31B0 Food F&A Excludable Gen:  All payments for alcoholic beverages, provided they meet all other University requirements, should be charged to this account code. Food expenditures incurred while entertaining, fund raising, alumni activities and marketing, Office refreshments not consumed primarily by guests of the university or at business meetings. 31C0 Dues Memberships Gen:  Includes, fees for membership in organizations such as professional organizations, regional or national associations. Also includes professional licensing fees. 31K0 Postage Gen:  Includes the purchase of postage stamps, stamped cards and envelopes, and internal billings from the UNM Post Office for special services such as certified mail. 31L0 Printing Supplies Gen:  Supplies cost related to printing such as ink, paper , die. 31M0 Recruitment Expense Gen:  Includes costs associated with On-Campus interview process such as advertising "help wanted", employment agency, communication expenses, meals for search committee incurred during candidates campus visits, (Athlete, Faculty etc…) UBPP 4040 31M1 Staff Recruitment Expense Gen:  Includes costs associated with On-Campus interview process such as advertising "help wanted", employment agency, communication expenses, meals for search committee incurred during candidates campus visits, (Staff Recruitment) 37Y0 Supply Costs F&A Excludable:  Supply costs that are excludable under Federal Circular A-21. Commencement supplies, student activity costs, alumni activities; Fundraising 37Z0 Other Supply Costs Gen:  Supply costs that cannot be classified in account codes 31xx.   3800 In State Travel Gen:  Includes all of the In-State travel expenses incurred by employees while traveling on behalf of UNM Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses. Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030 3820 Out Of State Travel Gen:  Includes all of the Out of State travel expenses incurred by employees while traveling on behalf of UNM Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses. Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030   3840 Foreign Travel Gen:  Includes all of the Foreign travel expenses incurred by employees while traveling on behalf of UNM Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses. Specific allowable expenses include: mileage to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. UBPP 4030 3850 Foreign Visitor to UNM Travel Gen:  Travel expenses incurred by a Foreign National (not an employee).  UBPP 2180.  Includes student travel. 3860 Bus Meals and Hospitality Gen:  All business-related food expenses purchased for guests while traveling, excluding meal expense incurred in the recruitment process. 3880 Vehicle Expense Gen:  Mileage reimbursement for the use of personal vehicles for in-town use 38L0 New Employee Moving Expense Gen:  Actual expenses of transporting immediate household effects, furnishings, and personal effects, including packing, crating and insurance. UBPP 4020 38N0 Travel Recruiting Gen:  Transportation, lodging, meal expense for candidates traveling to UNM campus can include spouse if deemed appropriate by Hiring Officer. UBPP 4030 & 4040 39Y0 Travel F&A Excludable:  Travel expenditures associated with lobbying, entertainment or other F&A excludable costs. See Federal Circular A-21. 39Z1 Travel Non UNM Employee-Non Foreign:  Includes all of the travel expenses incurred by Non UNM employees while traveling on behalf of UNM Does NOT include Athletic Department staff travel for scouting, recruiting, or team travel purposes, or employee moving or relocation expenses. Specific allowable expenses include: mileage (to/from airport, vehicle rental, public transportation, fares, parking fees, lodging, meals, & other misc. travel expense. 6350 Promotional Exp F&A:  Excludable Gen Promotional items and memorabilia, including models, gifts and souvenirs; costs of advertising and public relations designed solely to promote the university. Federal Circular A-21 Section J1. 6370 Printing/Copying/Binding Gen:  The cost of all printed forms and documents. Includes tickets and programs for athletic events or stage performances, art show catalogs, research bulletins and journals, student publications, mailers, calling cards, stationery, receipt forms, and other printed material. Also includes any binding costs that are associated with the before mentioned.   63A0 Conference Fees Gen:  Fees paid to attend conferences. 63A2 Seminars/Training Fees:  Fees paid to attend training sessions and or seminars.   63C0 Copying Gen:  The cost of copies made outside the department, not for resale (for example, copies made by the University Duplicating Services). 63E0 Honoraria Gen:  A payment to an individual of special achievement or renown, in return for that individual's willingness to visit the University and participate in a University event of short duration (such as speaker, reviewer, seminar participant, etc.), with the understanding that the payment does not constitute compensation commensurate with the actual services provided. SPQ not required. MAY NOT be paid to an employee. 63E1 Honoraria -Foreign Visitor:  A payment to an individual of special achievement or renown, in return for that individual's willingness to visit the University and participate in a University event of short duration (such as speaker, reviewer, seminar participant, etc.), with the understanding that the payment does not constitute compensation commensurate with the actual services provided. SPQ not required. Foreign individuals only. MAY NOT be paid to an employee. 63V1 Consultant Fees - Foreign Visitor:  "Foreign" individual providing consulting services 69Y0 Professional Service F&A:  Excludable Professional Services excluded under A-21. 69Z0 Other Professional Services Gen:  Includes the cost of professional services provided by an outside, non-campus source, as agreed by contract excluding those assigned to other 63* or 69* account codes. 8045 Interdepartmental Support:  See General Accounting website for policy and procedures. Account code 8045 MUST be the debit AND credit side of any entry in which it is used. 8060 Other Operating Costs Gen:  Cost required for continuing operations, excluding those cost defined elsewhere in the chart of accounts. 9000 Equipment/Furniture >$5,000:  Includes the cost of equipment and furniture that is capitalized, with a cost greater than $5,000.00 per item.   9020 Computer Hardware >$5,000:  Includes the cost of computers and computer equipment that are capitalized, with a per item cost greater than $5,000 (per item would be CPU and monitor combined.) Examples: laptop w/a unit cost >$5,000, desktop computer w/a unit cost > $5,000, computer servers. Does not include warranties, maintenance agreements, or supplemental software not necessary for the operation of the computer.   APPENDIX 2: PROPERTY ACCOUNTING Property Accounting Questions?  Call:  277-7715      Email:  plantfun@unm.edu      Website: http://www.unm.edu/~plantfun/ LIBRARY ONLY ACCOUNTS: The following accounts can only be used by main libraries, such as HSC Library, Zimmerman Library, Parish Library, Cent Engineering Library, etc.  These accounts CANNOT BE USED for departmental libraries. 6312,6313,6314,6315, accounts beginning with 91** GREATER THAN OR EQUAL TO $10,000 EQUIPMENT The State of NM Higher Education Department (HED) Procurement Code requires that any SINGLE PIECE of equipment whose purchase price is greater than or equal to $10,000 must be charged to a plant fund index. Departments must use a plant fund index for this type of equipment.  The fund will have a “P” in the description.  For example, 2Pxxx, 3Pxxx, etc. The Program code for the index will be P501.  Contact Property Accounting if you have any questions. PROPERTY ACCOUNTING ACCOUNT CODE DEFINITIONS (found under http://www.unm.edu/~plantfun/ , “Memos and Updates”) The Property Accounting Department has recently received questions regarding which accounts to use for equipment and computer purchases. This memo is intended to clarify the use of certain accounts for these purchases and to supplement the attached Equipment Account Code Decision Tree. If you have any questions on this information or regarding which account to use for a purchase of equipment or computer, please contact Property Accounting at 277-7715 or via email at plantfun@unm.edu. Account 3140 Computer Software – This account is used for the following type of purchases: • Microsoft PowerPoint software • Adobe Acrobat software NOTE: This is only application software purchased for existing computers (i.e. the computer did not have the software already installed when the machine was originally purchased). Account 3150 Computer Supplies <$5,001 – This account is used for the following type of purchases: • Printers • Hand-held PCs (i.e. Palm Pilots) • Computer servers • Monitors (replacement monitors only) • Computer accessories (i.e. mouse, keyboard, etc) purchased separately from an entire computer system. NOTE 1: Each of the above items should have an individual cost of $5,000.00 or less. NOTE 2: An entire computer system would mean that there is one (1) cost stated on the quote/purchase order for the computer, monitor and all accessories. Account 3180 Non Capital Equipment <$5,001 – This account is used for the following type of purchases: • Fax machines • Projectors • Lab equipment (centrifuges, balances) • Any equipment that has a cost of $5,000.00 or less and does not meet the criteria of any other account listed in this memo. Account 3189 Computer <$5,001 – This account is used for the following type of purchases: • Desktop computers (CPU only) • Laptop computers • Tablet computers NOTE: Each of the above items should have an individual cost of $5,000.00 or less. Account 70C1 Equipment Warranties/Service Contracts – This account is used for warranties or service contracts that have a separate stated cost on the purchase order. Account 70E0 Computer Hardware Maintenance – This account is used for repairs or maintenance to computer hardware. Account 70E1 Computer Software Maintenance – This account is used for repairs or maintenance to computer software. Account 9000 Equipment/Furniture >$5,000 – This account is used for equipment/furniture purchases that have all three (3) of the following characteristics: • It is movable • The cost of the item itself is greater than $5,000.00 • The life of the item is greater than one (1) year. NOTE 1: If there are freight or installation charges (regardless of the cost) associated with this purchase – these charges should also be coded to the 9000 account. NOTE 2: If there are upgrades to an existing piece of equipment that are greater than $5,000.00 (for each individual upgrade), these purchases should also be charged to the 9000 account. EXAMPLE: If you purchase $10,000 in office chairs and each chair costs $50 – the entire purchase should be charged to account 3180 because each individual item does not have a cost that is greater than $5,000.00. Account 9020 Computer Hardware >$5,000 – This account is used for computers and servers (hardware only) that have all three (3) of the following characteristics: • It is movable • The cost of the item itself is greater than $5,000.00 • The life of the item is greater than one (1) year. NOTE 1: If there are freight or installation charges (regardless of the cost) associated with this purchase – these charges should also be coded to the 9020 account. NOTE 2: If there are upgrades to an existing piece of computer hardware that are greater than $5,000.00 (for each individual upgrade), these purchases should also be charged to the 9020 account. EXAMPLE: If you purchase 10 computers for a total of $6,000 (each computer costs $600) – the entire purchase should be charged to account 3189 because each individual item does not have a cost that is greater than $5,000.00. Account 9040 Equipment Non UNM Titled – This account is used if: • Equipment is purchased on a contract or grant which states that the equipment is the property of the funding agency. • UNM will not have title to the equipment being purchased. • It is movable and has a life that is greater than one (1) year.   Account 9060 Equipment Fabricated – This account is used if: • Parts are purchased for equipment to be built (fabricated) at UNM. • The finished total cost of the equipment is greater than $5,000.00. • The finished piece of equipment will not be part of a building or attached to a structure. NOTE 1: This account is not used for assembly or installation costs that are associated with an item that is not being fabricated at UNM. NOTE 2: When the fabrication project (equipment) is complete – please notify the Property Accounting Department so that we may capitalize this piece of equipment. EXAMPLE: A department purchases parts to be used to construct a piece of lab equipment that will be used to conduct experiments. The price of these parts would be charged to this account. Account 9300 Fixed Equipment – This account is used for the following type of purchases: • HVAC systems • Alarm systems • Fire sprinkler systems. NOTE: This equipment is fixed and is not movable. This account is used for equipment that is attached to part of a building.   APPENDIX 3: OPERATING LEDGER CATEGORIES These are the Categories in which your expenses must correctly fall.  Note that in some cases (most of them noted in this material) the expenses must also be in a specific account code.  At other times, the department can choose an account code WITHIN THE CORRECT CATEGORY where they wish an expense to fall. Category Note Salaries Redistribute to same account Payroll Benefits Will be redistributed to same account Supplies Be careful with computer related expenses Travel Be careful with foreign visitors. All moving expenses MUST be in 38L0 Student Costs  Research Costs  Patient Care Costs  Communication Charges  Services  Plant Maintenance Keep warranties separate from repairs Utilities  Other Expenses  Special Grant Contract Expenses Primarily all subawardees Capital Expenditures When in doubt, call Property Accounting Helpful Hints for coding new expenditures: 1) Read the account code descriptions. 2) Look at previous expenses that are similar.  What account has your department been using? 3) Call your accountant or fiscal monitor if in doubt.    APPENDIX 4: FOOD ACCOUNTS Account Code Description Purpose 31A0 Business Food-Local Food consumed LOCALLY, primarily by staff, faculty, and their UNM guests in situations where the meal is incidental to the meeting, lecture, etc. Examples: refreshments for staff (or students) during a day-long retreat, conference, or training session, a meal with a guest speaker, snacks for volunteers at Popejoy events. Please provide detailed list with names, companies, job titles if < 20 attendees, or a general list of who from where if > 20. 31B0 Food F&A Excludable All alcohol.  Food for student activities (that are not instruction-related), and marketing, entertaining, fundraising, and promotional activities. Events involve the public/community/ students.  Examples: BBQ social hour with students and faculty; luncheon with potential donors, entertaining the Brazilian Trade delegation; dinner with grad students and guest speaker. Please provide detailed list with names, companies, job titles if < 20 attendees, general list of who from where if > 20. 3800, 3820, 3840, etc. Travel  Per diem or actual food expense for a traveler, included with transportation, hotel, etc. 3860 Business Meals and Hospitality Gen All business-related food expenses purchased for guests while TRAVELING, excluding meals for recruitment. Please provide names, companies, job titles. 31M0 Recruitment Expense/Faculty Food purchased for faculty recruitment. Please provide names, companies, job titles. Not just for food. 31M1 Recruitment Expense/Staff Food purchased for staff recruitment. Please provide names, companies, job titles. Not just for food. 40C0 Food Services Student C&G grants, normally, or Athletics: Food expenses specifically subsidized by funding agency for student participants. Please provide names, description. Also used for daycare food. 4640 Participant Incentives C&G grants, normally, or Research: Food provided as a “reward or gift” for participation in a study or experiment. Please provide names, description.   APPENDIX 5: YOU MAKE THE CALL ANSWERS 1) Brochures were ordered from and supplied by an external company, ABC Printing.  • A service account will be used.  • The best account is 6350-Promotional Expense F&A Excludable.  An acceptable choice would be 69Y0-Professional Services F&A Excludable.  This is an F&A Excludable Expense in the services category.  These are the only F&A excludable accounts in the Services category. • Include adequate item text to justify the account chosen. 2) Brochures were ordered from and supplied by an external company, Van Johnson Designs, Inc.  • A service account will be used.  • Depending on how this item was budgeted, how it is customarily handled by Dr. Barstow’s department, and other related details, the correct account may be one of these: 6370-Printing/Copying/Binding Gen, 63L0-Typesetting Printing Gen, 63L1-Graphic Design Gen, 63X0-Technical Services Gen, or 69Z0-Other Professional Services. • Include adequate item text to justify the account chosen. 3) Survey design was ordered from and supplied by an external person.  Survey was produced in house by Dr. RedMond’s department.  • A service account will be used to pay Ralph. • Depending on how this item was budgeted, how it is customarily handled by Dr. RedMond’s department, and other related details, the correct account for Ralph’s design cost may be one of these: 63L1-Graphic Design Gen, 63X0-Technical Services Gen, or 69Z0-Other Professional Services. • Include adequate item text to justify the accounts chosen. 4) These are Supplies and Equipment Expenses. • An account or accounts in the Supplies area will be used for the paper and toner, such as 3100-Office Supplies General. • Account 3180-Non Capital Equi9pment <$5,001 will be used to expense the copier. • Include adequate item text to justify the accounts chosen. 5) These are minor (,$100,000/year in sales) internal service center allocations.  See more Internal Service Center guidelines for more information at: http://www.unm.edu/~gacctng/changesinternalservicecenterproc.html • The revenue account is 0699 • The expense account is 63C0-Copying Gen • Note that you do NOT use 3100-Office Supplies as your expense account.  This is a supplies account, and you have provided a service. • Include adequate item text to justify the accounts chosen.  Mention that this is a minor internal service center allocation. 6) This is the purchase of a computer under $5,001 and a printer.  The items are itemized in the receipt. • The computer ($1,200) will be expensed under 3189-Computers • The two printers ($750) and monitor($400) will be expensed under 3150-Computer Supplies and Servers <$5,001. • Include adequate item text to justify the accounts chosen. 7) This is the purchase of office renovations, chairs, and modular furniture. • The labor, windows, and carpet would be expensed to account 7000 Plant Repairs Maintenance because the charges do not total $500,000 or more and do not constitute a major project. • The cubicles, desk surface, chairs, and cabinets, which are modular furniture, would be expensed to account 9000-Equipment/Furniture >$5,000, since the combined cost is >$5,000.  If the combined cost had been less than $5,000, they would have been expensed to 3180-non capital equipment <$5,000. • The three office chairs would be expensed to a supplies account such as 3180-non capital equipment <$5,000, since they are less than $5,000. 8) This is the purchase of equipment greater than $5,001.  This equipment must be capitalized. • The Gizmo will be expensed to account code 9000-Equipment/Furniture >$5,000 • The shipping, Installation, and staff training will also be capitalized in account 9000-Equipment/Furniture>$5,000 • The warranty will be expensed in account 70C1-Equipment Warranties/Service Contracts, since warranties are not capitalized. • See why you need to call Property Accounting sometimes?

Grant Closeouts

Presenter: Jessica Rosen
Date: 10-13-2008

Presentation - Word
Presentation - PowerPoint

  Grant Closeouts   Presented by Jessica Rosen 10/13/08       prepared by Terry Shoebotham Business Management Specialist In collaboration with: HSC Contract & Grant Accounting Main Campus Contract & Grant Accounting   Table of Contents Grant versus Fund Closeout 3 What is a Grant Closeout? 3 What is a Fund Closeout? 4 Why Close a Grant or Fund Immediately after it Ends? 4 Workflow Process 6 Grant Closeout Differences: Main Campus and HSC 6 Grant Closeout Department Duties 7 Is the grant or fund ending? 7 Expenses correct and complete 7 Will there be a loss? 8 Related reports/documents complete 8 Reconciliation Form sent to Contract and Grant Accounting 8 What about F&A? 8 Is it Closed Yet? 8 Contract and Grant Accounting Office Grant Closeout Duties 10 One Touch Process 10 Closeout begins with your returned Reconciliation Form 11 Checklists 11 Move off Unallowable Expenses 11 Correct F&A if necessary 11 Record the residual balance or loss 11 Close the Grant or Fund 12 Appendix 1A – Completed HSC Reconciliation Form 13 Related Screens 14 Appendix 1B – Completed Main  Campus Reconciliation Form 16 Related Screens 18 Appendix 2 – Banner Closeout confirmation Screens 22 Appendix 3A-Department Checklist 27 Appendix 3B-Contract & Grant Checklist 28   Grant versus Fund Closeout What is the difference between a grant and a fund?  The following accounting structure will help you see the difference: Grant Code XXXXX  Fund 1   Index 1   Index 2  Fund 2   Index 1  Fund 3   Index 1   Index 2   Index 3 What is a Grant Closeout? A grant closeout involves the completion and review of all activity on a completed grant, including: • program completion • Progress Reports and other required documentation completion • Banner accounting reconciliation and closure o for each index o in each fund for the entire grant. When a grant is closed, all funds and indices for that grant are closed.  All spending for the grant ceases as of the project period end date for the grant, which you can see in Banner screen FRAGRNT.  Continuing expenses are moved off the grant. Grant Code XXXXX-Status “C”  Fund 1-FROE   Index 1-closed   Index 2-closed  Fund 2-FROE   Index 1-closed  Fund 3-FROE   Index 1-closed   Index 2-closed   Index 3- closed All reports and other documents are due. When the grant is closed, the status of the grant changes to “C” (closed) in FRAGRNT.   What is a Fund Closeout? What’s the difference between a fund and grant closeout?  The following shows the difference: Grant Code XXXXX-Status “A”  Fund 1 FROE   Index 1 -closed   Index 2-closed  Fund 2   Index 1  Fund 3   Index 1   Index 2   Index 3 A grant may require a new fund for each year it is in operation, or for other periods, depending on the grant requirements.  Generally, when a grant requires a new fund, the old fund is closed out.  The grant, however, remains open.  A new fund with a new index will be issued for this continuing grant.  As of the beginning date of the new fund all expenses for the grant will be charged to the new fund.  All recurring expenses will also be moved to the new fund.   The old fund/index is no longer used for future charges.  There may be reconciling items that need to be transferred in or out of the old indices before the fund can be closed.  A Reconciliation Form is completed by the department for indices in the closing fund, and the fund is closed. When the old fund is closed, FRAGRNT screen in Banner will NOT indicate “C”  (closed) for the grant.  The status will remain “A” (active). When the old fund is closed, the FTMFUND screen in Banner will indicate the closure is complete by “FROE” occurring in the title of the fund.  The date the fund was closed and the amount for which the fund was closed will also now appear in the title field. The balance in account A0CC, Claim on Cash, will be zero. Reports and other documents continue to be due on an ongoing basis. Why Close a Grant or Fund Immediately after it Ends? There are several reasons Grants and funds are supposed to be closed by departments within 60 days after their end date, but the most important one for departments is that it should decrease your workload. When all the funds in a grant are closed, charges cannot accidentally hit the grant.  You should no longer need to review the grant’s indices monthly or move errant expenses.  This can result in significant time savings. You will also remain on better terms with your sponsor.  When you are in compliance with the terms of your grant, the sponsor’s perception of the department is good. The most important reason for UNM to close grants in a timely fashion is to remain in compliance with Federal regulations that require grants to be closed within 90 days of ending.   Workflow Process The Grant Closeout Workflow process is an automated system that is programmed to send emails to specific people at various points during the closeout process.  Workflow also automatically makes closeout changes to Banner when certain tasks are completed. Workflow went live across all campuses 9/30/08.  You can find Workflow on your MyUNM screen:   Workflow is designed to increase efficiency in the close out process for the Principal Investigator, department, the Pre-Award, and Contract and Grant departments.  Workflow enhances communication, tracking, and accountability during various stages of the process. Grant Closeout Differences: Main Campus and HSC There are no process differences in Grant Closeout between campuses.  Workflow is the same for both HSC and Main Campus.  Closing a grant or fund on Main Campus or on HSC campus involves the same departmental activities. For the Core Accounting offices, there are some procedural variations, but they do not affect the departments.  Grant Closeout Department Duties There are several steps you need to take in order to promptly and correctly close your grant or fund. Is the grant or fund ending? When you get a workflow email stating that your fund is ending, you need to determine whether or not this is correct. There are numerous ways to determine when your grant or fund is ending.  Here are some: • Read your Notice of Grant Award.  This will tell you when the grant ends. • If you have a SNAP award [Streamlined Non Competing Application Process] the fund should be extended if the grant is not ending. • For Health Science Center grants, look in FRAGRNT under the User defined tab.  It may say “has Expanded Authority”, “Doesn’t have expanded authority”, LOC, or “Budget Period needs new index” • Discuss with your PI to determine status • Ask your Fiscal Monitor. Make sure you, your Fiscal Monitor, the Pre-Award department, and the Principal Investigator understand whether the grant is ending, the fund is ending, or one or both are NOT ending. If the grant is continuing, but the fund is ending: • Find out the status of the new fund for the grant.  You will need the new fund with a new index in order for the grant to continue without interruption.  If necessary, submit a Request to Spend Funds Form (RTSF). • Move all recurring expenses, like salaries, P-Cards, or ITS (phone) charges to the new fund’s index with the correct effective date as soon as possible.  You may also need to adjust the CRLS Standing Order for Central Lab Supplies internal POs.  Make sure this corresponds with the beginning date of the new award. • Review all expenses on the fund and move in or out any expenses that need to be moved.  If you are reconciling your index monthly, this will be a simple task. If the grant is ending: • Move all recurring expenses, like salaries, P-Cards, or ITS (phone) charges to a new index, with the correct effective date.  Don’t forget to adjust the CRLS Standing Order for Central Lab Supplies internal POs. • Remove all unused encumbrances as soon as you determine they will not be needed. • Review all expenses on the fund and move in or out any expenses that need to be moved.  If you are reconciling your index monthly, this will be a simple task. Are the expenses correct and complete? When the expenses are correct in FRIGITD, using workflow, return the completed Reconciliation Form by the due date.  Will there be a loss? To avoid a loss, do not allow your line item direct expenses on a cost reimbursement grant to exceed your line item direct cost budget.  Direct expenses are all expenses in all accounts except account 89Z0-F & A Expense. The only exception to this rule is if you have excludable expenses budgeted and instead moved non excludable expenses onto the grant.  This may cause your F&A to increase beyond what was budgeted for F&A.  If you think you may be doing this, compute your F&A change or ask your Fiscal Monitor for help. With Fee for Service contracts, your revenue is dependent on the services provided.  If costs exceed this revenue, you will have a loss. The direct expenses on the reconciliation you send in should match the direct expenses in Banner.  Wait until your journal vouchers that are moving expenses have been sent, and your encumbrances are cleared [equal to zero].  Your Reconciliation Form, once signed, indicates you have reviewed the expense transactions on the grant and certify they are correct.  Contract and Grant Accounting is not responsible for catching errors; you are. Are related reports/documents complete? • PI submits progress report directly to sponsor • Other documents are submitted as required • The Account Administrator documents that this has been done in workflow. • The Fiscal Monitor sends the Reconciliation Form and patent form if applicable to the department for completion. Has the Reconciliation Form been correctly completed and sent to Contract and Grant Accounting? The reconciliation form must be completed and returned to your Contract and Grant Accounting department by the due date.  The direct expense numbers on this form MUST MATCH the direct expenses numbers in the Banner accounting system before the fund can be closed.  All expenses must be corrected and submitted prior to completing and returning this form.  All encumbrances must be removed from the grant before returning this form. What about F&A? Once your Reconciliation Form has been returned, Contract and Grant Accounting will make any needed corrections to F&A.  If your actual line item direct expenses for a cost reimbursement grant do not exceed your budgeted line item direct expenses, you will not have a loss when Contract and Grant Accounting adjusts your F&A. Is it Closed Yet? Once you have completed your closeout duties, you will want to know when Contract and Grant Accounting has completed the closeout.  This is easy to check.  Below are two Banner screens that will show you if the Grant or Fund is closed. If the entire Grant (not just one fund within the Grant) is supposed to be closed, you can look at FRAGRNT and FGITBAL.  If the Status box is “C” (closed) and Account A0CC, Claim on Cash, has a balance of zero, the grant is closed.  You can see account A0CC on FGITBAL, or any Banner Screen showing Balance Sheet accounts. If the status is still “A” (active), it has not been closed.  One or more funds may be closed but if any funds are active, the grant will show an active status.   This grant is closed.   If only one fund of the Grant is supposed to be closed, you can see this on several screens.  One such screen is FGITBAL.  If “FROE” and a dollar amount and date appear after the fund and account A0CC, Claim on Cash has a balance of zero, the fund has been closed.  If a fund is closed you will always see the “FROE” description with the dollar amount and closing date in the fund name on any screen that shows this information.  This is true whether the entire grant has been closed or just that fund. Contract and Grant Accounting Office Grant Closeout Duties One Touch Process HSC Contract and Grant Accounting uses a “One Touch” process whenever possible to close out a grant.  “One Touch” means all needed information is gathered and the file is only touched once.  All the closeout work is completed in one session.  The concept is simple, and you can use it too. • Do monthly reconcilements on each grant.  Resolve any problems monthly. • Keep all your grant information organized and up to date in a folder. • As the Grant end date approaches, proactively move all recurring charges, including payroll and telephone charges, to a new index with a correct future date. • After the grant ends, pick up the Reconciliation form ONE TIME.  Complete the form and send it back immediately.  Grant work done. Closeout begins with your returned Reconciliation Form Generally the closeout process does not really begin in Contract and Grant Accounting until you have returned this form.  Promptly returning this form will help Contract and Grant Accounting close your grant quickly. Checklists Some Departments have developed their own Closeout Checklists.  Appendix 3A has incorporated the best ideas currently in use by several departments.  You may find this department checklist helpful.  Modify it to suit your department’s needs.  You will find this form, Department Closeout Checklist, posted on both Contract and Grant Accounting websites under “Forms”.  HSC URL is http://hsc.unm.edu/financialservices/postaward/forms.shtml .  Main Campus URL is http://www.unm.edu/~cgacctng/forms.html .  Contract and Grant Accounting has a detailed checklist for their staff to use while closing out grants.  You can see the many steps they go through in Appendix 3B. Move off Unallowable Expenses Contract and Grant Accounting is not responsible for finding unallowable expenses charged to your grant.  The department, under the guidance of the Principal Investigator, is responsible for making sure that only allowable expenses are charged to the grant.  Nevertheless, Contract and Grant Accounting will look at your grant’s expenses for reasonableness.  If any expenses that appear to be unallowable are noticed, your fiscal monitor will ask you about them.  If they are unallowable, you will be asked to move them off the grant.  Money the sponsor has already paid could be returned to the sponsor. Make sure this does not happen to you.  Reconcile your grants monthly and do not let unallowable expenses creep in. Correct F&A if necessary Calculating F&A is the subject of another class.  Your Fiscal Monitor will check your F&A and correct it, if necessary, at this point in the closeout process. Don’t assume your F&A is correct unless you know exactly how to calculate it.  If your actual direct expenses do not exceed your budgeted direct expenses, you will not have a loss when Contract and Grant Accounting adjusts your F&A. Record the residual balance or loss After you have certified the expenses on the grant are correct and your Fiscal Monitor has corrected F&A, the Fiscal Monitor will look at the balance in the grant financial accounts.  If there is a residual balance (gain) that your department is allowed to keep, it will be moved to the unrestricted index that is identified by your department.  Losses are recorded in the grant fund as a loss.  The loss is charged to account 8600 and the index used is the unrestricted index provided by the department. Close the Grant or Fund When all your entries are recorded, your fiscal monitor will make sure all revenue owed has been collected and account A0CC, Claim on Cash has a balance of zero.  Soon after this point your Fiscal Monitor will close the grant or fund. When each fund in your grant is closed, the name of the fund is changed.  The name of all closed funds starts with “FROE”, and is followed by the dollar amount of revenue received in this fund, and the date the fund was closed.  You can see this change on any Banner screen that shows the fund name.  Some of these screens are FTMFUND, FGITBAL, and FGITBSR. When all the funds in a grant are closed, the grant itself is closed.  The status of the grant in FRAGRNT is changed to “C” (closed).  Account A0CC, Claim on Cash has a balance of zero.    Appendix 1A – Completed HSC Reconciliation Form X     Related Screens Note that F&A was left for the core office to complete in the above reconciliation.  The total above (red) does NOT match the Banner total below (red).  If you look at the reconciliation detail (green), however, the direct expense total in the reconciliation [$26,348.79] DOES match the Banner direct expense total (green), line by line.  The only difference is F&A. IMPORTANT NOTE:  Remember that if your Actual Direct Expenses [$26,348.79, below] do not exceed your Direct Expense Budget [$29,763, below] you will not have a loss when F&A is adjusted.  Direct Expenses are all expenses except F&A.       FGITBAL will show you grant balances.  Note that the fund is closed.  Account A0C, Claim on Cash is zero.  Fund title now says, “FROE…”     Appendix 1B – Completed Main  Campus Reconciliation Form The signature at the bottom indicates the certification by the department that all charges are correct.     Note that this worksheet lists the charges that are to be transferred off the grant.  It gives identifying numbers so the original transaction can be identified.   Related Screens To determine which fund is being closed, go to FTMACCI.  Select “Enter Query”.  Input the index[green]. Select “Execute Query”. This tells you the fund being closed is 272H1, on grant 2R72H.   Now you can go to FRIGITD and see what the expenses look like for this fund.  Check the “Fund Summary” box.   Now select Next Block.   Note that fund 272H1 is highlighted in the top portion of the screen.  This indicates the expenses in the lower half of the screen are 272H1 expenses.   What can you tell by looking at the budget and activity as it is now stated for this grant? 1) The total Expense is LESS THAN the total budget (see Net Total amount circled of $288.54).  The grant is not overspent.  There remains an Available Balance of $288.54, which could have been spent but was not. [red] 2) Once the Contract and Grant Accountings Office has collected all outstanding revenue and verified that the Balance Sheet accounts are correct (zero), they will close the grant. Not all grants with a remaining balance result in a residual balance (“profit”) to the department.  Cost reimbursement grants never result in a residual balance (“profit”).  Many other types of grants also do not result in a gain to the department.  Ask your Fiscal Monitor to explain if you think you should have received a residual balance and did not.     Is this Fund Closed? To determine this, we go to FGITBAL.  Is the fund closed?   Answer: No. There are two ways you can determine the fund is still open from this screen. 1) The fund name does not say “FROE” with a dollar amount and date.  It still has a normal fund name, “MR-Native Language Tribal 2006-2007” [red] 2) Account A0CC,  Claim on Cash does not have a balance of zero.   Appendix 2 – Banner Closeout confirmation Screens FRAGRNT Closeout confirmation – Entire Grant   Note that you must also check to make sure account A0CC, Claim on Cash  has a balance of zero[FGITBAL screen].  FRIGITD – check the “Fund Summary” blocks, select Next Block   FRIGITD shows Four Funds: Go to FTMFUND.  Select Enter Query [or F7], and put the first fund in the Fund block   Select Execute Query [or F8].  Note the Title says “FROE”, and the termination date is a prior date.  You can repeat for each index.  If the fund is not closed, you can still see whether or not the fund is active by looking at the termination date [green].  If the termination date is BEFORE today’s date, the fund is inactive.  You can check the balance of A0CC,  Claim on Cash in FGITBAL, as shown earlier.  It is zero. Appendix 3A-Department Checklist Grant/Contract_____________  Principal Investigator __________________________ Fund ____________________  Dept. Closer _________________________________ Index ____________________  Completed (sign & date) _______________________ End Date _________________  Reviewed (sign & date) ____________________________ Initial When Completed Date  When Completed Item Comments   Is the Grant or contract closing?    Is the Fund closing?    If the fund (but not the grant or contract) is closing, is the new fund/index  set up?    All recurring charges are moved off the grant/contract with the correct effective date (including Telecom/ITS).    All expenses are correct grant/contract charges.  Any incorrect charges have been moved off.    No correct grant/contract charges are missing.  Any missing charges have been moved into the correct grant fund.    All encumbrances are at zero.    The PI has confirmed that all Progress reports have been turned in.    All other required documents have been completed (list under comments).    The Reconcilement Form has been completed and sent to Contract and Grant Accounting Office.      (HSC only) direct expenses match Banner direct expenses.    Confirm the grant/contract or fund has been closed by the Core Office.      Appendix 3B-Contract & Grant Checklist (Used by Fiscal Monitors to Close a Grant or Fund)    APPENDIX 4A– Main Campus Reconciliation Sheet University of New Mexico Contract & Grant Accounting MSC01 1245 Phone: 277-4721  Fax: 277-8567        Contract & Grant Closeout Reconciliation            Grant Code:          Fund Code:          Index Number:          Funding Agency:          End Date:          Principal Investigator:                 According to our records, the above referenced grant has ended.  Please complete, sign, and return this Contract & Grant Closeout Reconciliation by _______________________________________________.  If you do not  respond by this date, Contract & Grant Accounting will proceed with closing the above grant/fund/index OMB Circular A-110, Sec. D.71 requires Federal Funds to be closed within 90 days of their Budget Period End Date.  Please take this opportunity to assist Contract & Grant Accounting.  If you have any questions regarding this form please contact your Fiscal Monitor at the above phone number.           If changes need to be made, please process the appropriate Legacy Redistribution Forms or Labor Redistributions  (PZAREDS) for any salary expenses and/or journal vouchers for other expenses in Banner Finance.  If necessary,  please submit any 90-Day memos with the closeout reconciliation.           Please list any charges not yet recorded in Banner (FRIGITD) in Column A.    Please list any items that have been transferred out and not yet recorded in Banner (FRIGITD) in Column B.         (A)   (B)    Additional Charges In   Additional Charges Out   1. _____________________________________  1. _____________________________________  2. _____________________________________  2. _____________________________________  3. _____________________________________  3. _____________________________________  4. _____________________________________  4. _____________________________________  5. _____________________________________  5. _____________________________________         Also, required for the closeout are any items checked below:     ________ Documentation for cost share (in-kind, third party matching, etc)    ________ PI certification/documentation required by agency     ________ PO modification to cancel or transfer outstanding open commitments    ________ Other: ___________________________________________________           If applicable, transfer residual balance / loss to Banner Index: __________________________________                Prepared By: _______________________________________________________  Date: _______________         As PI, I certify that all expenditures reported above are for appropriate purposes and in accordance  with the sponsored agreement.  On cost reimbursement indices, this will be the final invoice amount.  No further changes are authorized by the department other than those referenced above.         PI Certification: ______________________________________________________ Date: _______________  APPENDIX 4B- HSC Reconciliation Sheet CONTRACT OR GRANT CLOSE-OUT RECONCILIATION RETURN  TO  FSD  BY:       Return to: MSC09 5220       Grant Code:        Fund Code:       FRS account #   NA Total Budget:       End Date:    Expanded Authority? (check if yes)       Funding Agency:       Principal Investigator:       Dept Account Administrator:       Department:       This section completed by Department          Date of FRIGITD Screenrpint:   Attach copy of Banner screen FRIGITD ("Grant Inception To Date").   A B C  D   Project Year-to-Date Adjustments Final Total   Explanation of (Examples; use what's on FRIGITD) Amounts as of (Additions / of Expenses  Adjustments Acct Code Description 1/0/00 Subtractions)    2000 Faculty Salaries    $                           -      2020 Admin Salaries    $                           -      2040 Technician Salaries    $                           -      20A0 GA TA RA PA Sal    $                           -      20F0 Housestaff Salaries    $                           -      20J0 Student Salaries    $                           -      20L0 Federal Work Study    $                           -      20P0 Temporary Salaries    $                           -      21E0 Tuition Waiver    $                           -      21J0 Other Benefits    $                           -      3100 Office Supplies    $                           -      3150 Computer Supplies    $                           -      3180 Noncapital Equipment    $                           -      31K0 Postage General    $                           -      31M0 Recruitment Expense    $                           -      3800 Travel    $                           -      4600 Animal Expenses    $                           -      4640 Participant Incentives    $                           -      50E0 Lab/Medical Supplies    $                           -      55Z0 Other Patient Exp    $                           -      63C0 Copying    $                           -      70D0 Equipment Rental    $                           -      8060 Other Operating Costs    $                           -      9000 Equipment - Furniture    $                           -      9020 Equipment - Computer    $                           -      89Z0 F&A      $                           -    Verified by HSC FSD TOTAL                                                                    0.00  0.00  0.00      If applicable, transfer residual balance/loss to Banner Index:___________________ The reconciliation must be returned and the charges moved on/off the Fund by the due date specified above.  The due date is 60 days after the Budget Period End Date of the Fund, unless agency requirements are more stringent.  OMB Circular A-110, Sec. D.71 requires Federal Funds to be closed within 90 days of their Budget Period End Date.    Prepared By:            Dept Account Administrator Date:   As PI, I certify that all expenditures reported above are for appropriate purposes and in accordance with the agreements set forth in the application and award documents.  On Cost Reimbursement indices, this will be the final invoice amount.    No further changes are authorized by the department than shown above.             Certified:            Principal Investigator  Date:    

Journal Voucher Guidelines

Presenter: Terry Shoebotham
Date: 07-14-2008

Presentation - PowerPoint
Handout - PDF

Journal Voucher Guidelines for Reserves, Allocation and Transfer Entries Terry Shoebotham Business Management Specialist In collaboration with: HSC Budget Office Main Campus Budget Office Main Campus General Accounting HSC Unrestricted Accounting & Reporting 7/14/08 Updated 10/2011 Table of Contents Definitions of Helpful Terms & Items:........................................................................................... 3 Allocation Entry:......................................................................................................................... 3 Transfer Entries:.......................................................................................................................... 3 Plant Fund Transfers:.................................................................................................................. 3 1900 -Reserves:.......................................................................................................................... 4 1903 -Change in Reserves Entry: .............................................................................................. 4 1901 -Budgeted Use of Reserves:............................................................................................. 4 8045 – Interdepartmental Support Entries .................................................................................. 5 Related Budget Entries Reminders:............................................................................................ 5 FORH008 HSC Transfers Allocation, a Hyperion report:.......................................................... 6 Transfer vs. Allocation: How to Tell .............................................................................................. 6 How to Make the Entries: ............................................................................................................... 6 Reserves Entry: ........................................................................................................................... 6 Allocation Entry:......................................................................................................................... 8 Transfer Entry:............................................................................................................................ 9 8045 Interdepartmental Support Entry: .................................................................................... 10 Budget Entries:.......................................................................................................................... 10 Common Journal Voucher Mistakes to Avoid: ........................................................................ 12 Flowchart -Transfer or Allocation? ............................................................................................. 13 Appendix 1-Allocation Entry Exceptions.................................................................................... 14 Reserves Account Codes........................................................................................................... 15 Allocation Account Codes ........................................................................................................ 15 Transfer Account Codes ........................................................................................................... 16 Clinical Revenue Allocation Account Codes ........................................................................... 19 Appendix 3-HSC Unrestricted Fund Structure ............................................................................ 20 Main Campus Unrestricted Fund Structure .................................................................................. 23 Appendix 4-FOAPAL Elements.................................................................................................. 29 Appendix 5-FORH008A -Transfer............................................................................................. 30 FORH008A -Allocation............................................................................................................... 31 Appendix 6 -HSC Plant Funds Transfer Form ............................................................................ 32 Appendix 7 – Checklist for Reserves/Allocation/Transfer Entries............................................... 33   Definitions of Helpful Terms & Items: Allocation Entry: Allocation entries are routinely used to move actual funding from one index to help support another index. Allocation entries must be budgeted; either in the original budget or as a budget revision.  It is used between indices within the same Fund level 2.  It is used to move non-clinical revenue to departments. An allocation entry uses income allocation accounts and does not directly affect Reserves.  Program level 2 must be the same, with some exceptions [see Appendix 1]. Allocation entries do NOT cross campuses. If the amount is not already budgeted, a budget entry must also be prepared. The list of allocation account codes can be found in Appendix 2. The list of Funds can be found in Appendix 3.  Allocation entries will use allocation account codes in the 1600-1666 range [see Appendix 2]. The person creating the Journal Voucher must that the “Departmental Journaler” security role or they cannot complete the entry. Use rule class code BD4 for allocation budget entries and JE2 for the actual funding entry. Transfer Entries: A transfer entry is used when an allocation entry is not allowed. It is used to move funding between Banner Programs [i.e., I&G, Public Service, etc.] or between campuses. It allows movement of funding from one Banner Fund Level 2 or Program Level 2 to a different Fund Level 2 or Program Level 2. All transfers must be budgeted; either in the original or revised budget. The deadline for all budget entries related to transfers is March 31st . After this date, unbudgeted transfers cannot be made.  Transfer entries will use transfer account codes in the 1100 – 12T0 range [see Appendix 2]. The person creating the Journal Voucher must have the “Departmental Transferor” security role or they cannot complete the entry. Rule class code BDT must be used to budget transfers. Call your core budget office before attempting one of these. Plant Fund Transfers: When transferring funds to a plant fund on HSC, you must complete the plant fund form found in Appendix 6 or on the HSC Budget Office website [http://hsc.unm.edu/about/budget/budget. shtml] under “HSC Budget Office Forms”. This form must be signed as indicated prior to the transfer being approved. 1900 -Reserves: For unrestricted indices, the remaining amount left [i.e., funds left to spend] or the cash deficit [i.e., funds you spent but did not have] at fiscal year end is rolled forward in the accounting system into the new fiscal year.  This is the Reserves amount for the year. It is akin to the starting balance in your checkbook. This roll forward is a system generated entry done by Finance Systems Management (FSM) in account 1900. Journal entries cannot be done using account code 1900. The Reserves represent actual dollars, not budget. Rule class code JBF is used by FSM to move these actual year end surplus or deficit within all unrestricted indices. 1903 -Change in Reserves Entry: The most common entry made to Reserves accounts involves a movement of balance from one index to another to cover a deficit in the index or to fund an index. Another common reason for a Reserves entry is to close an index that has a balance but has had no activity in the current year; the only account with a balance is 1900 in this instance. Another reason for Reserves entries is to correct prior year entries. When an error is found in an unrestricted index after the accounting records have been closed for the fiscal year which only affects unrestricted indices, a change in Reserves entry is the method used to correct the error.  These entries use account 1903 on both sides of the entry. The indices involved must be in the same Fund level 2 and Program level 2. If an error is between account codes within the same index, no entry is required. These entries increase (or reduce) the prior year end remaining balance in the affected indices. They do not affect the expense accounts where the entries originally occurred. These entries must be well documented so the original entry that is being corrected can be identified.  1901 -Budgeted Use of Reserves: Reserves funding that is expected to be spent during the current fiscal year is budgeted in account code1901. Rule class code BD4 is used to adjust the budget. Negative Reserves, or the reduction of funds to spend in the current year to make up the deficit, must also be addressed in the budget using account code 1901. 8045 – Interdepartmental Support Entries These entries can sometimes be used when allocation and Reserves entries cannot be used. These entries will avoid the use of a more complicated transfer entry. As with allocation, transfer, and Reserves entries, the same account code [8045 in these entries] must be used for both the debit and credit side of the entry.  The entry must net to zero.  Additionally: .  Line items affecting any other account codes may not be used in a JV in which account code 8045 is used. .  There is a limit of $5,000 per transaction, and $20,000 per year, per index. This means the document transaction total cannot exceed $10,000, $5,000 for the Debit and $5,000 for the credit. .  Any exceptions to these limits must be approved by Central Accounting before an entry is submitted. . Salaries cannot be moved using account code 8045. . No budgets are allowed for this account. . Account code 8045 cannot be used with restricted indices. . There must be a detailed description of the type of expense being billed, as is true with allocation, transfer, and Reserves entries. . Account code 8045 cannot be used for purchasing on Higher Markets. . Account code 8045 cannot be used to reallocate P-Card transactions. Related Budget Entries Reminders: FOR TRANSFER ENTRIES: . The description field for every sequence of the JV must include the offset index and account code as the first set of characters in the field. . All entries must be simple and not compound. . Required document text must be provided. . IN GENERAL: . Funding to be moved must be budgeted . If not included in original budget, prepare needed budget entries at the same time as the actual allocation or transfer entry . To budget Reserves usage, account code 1901 must be used . Only that portion of the actual Reserves that you are anticipating spending in the current fiscal year is budgeted in account code 1901 . Use rule class code BD4 for Reserves and allocation budget entries . Use rule class code BDT for transfer budget entries . Use report FORH008 to determine the correct budget entry for transfers and allocations . Remember that expense account 8060 is a report default; use the correct expense account . Account codes 1900 or 1903 can not be used in budget entries .  Negative Reserves must also be addressed in the budget using 1901 and will reduce the total budgeted revenue and expense FORH008 HSC Transfers Allocation, a Hyperion report: This report will assist you in determining the type of entry needed, allocation or transfer. This report is essential because it gives you the description that is required for transfer entries. It will show you what index/account to use for both actual dollars and budget. It will tell you whether the entry should be a transfer or allocation entry, or if the entry is not allowed. It is located at Brio/Finance Reports/F Dept_School_College/F HSC/FORH008 in your Hyperion Directory. Transfer vs. Allocation: How to Tell Movement of funds between programs, such as between Educational programs and Research programs, is a transfer. Movements within programs, such as moving Instructional and General funds from the Nursing Instructional and General program at HSC to the Pharmacy Instructional and General program at HSC, is an allocation. The accounting structure used by UNM will help you determine which sort of transaction you are contemplating, and the FORH008 report will assist you in preparing the entry. How to Make the Entries: Reserves Entry: . These entries move revenue from one index to another. . These entries are also made to correct prior year errors found after year end has closed. . Reserves entries are ONLY used when all affected indices are unrestricted. . Determining if this is the correct entry to make: o  Are you moving revenue that is a Reserves? If so, actual dollars will be in account 1900.  If budgeted, it will be budgeted in account 1901. o  Are all indices involved in the same Fund level 2 and Program level 2? .  You will move the money with account 1903. The entry will have 1903 for both the debit and credit so the total activity for the account code is zero.  Both sides of a Reserves entry will always use account code1903.  They will always zero out 1903. .  Example: Mary Smith found a $14,000 equipment purchase error in one of her unrestricted indices. It was made to the wrong unrestricted index [34xxxx] in the prior year. She wants to correct both indices involved by moving the expense to the correct unrestricted index, 21xxxx.  Both indices are in the same Fund level 2 and Program level 2. .  Reserves account: o  Figure out which index has too much money. In this case, Index 34xxxx has $14,000 too much expense. They are missing $14,000 of money in their Reserves account. Had the expense been properly accounted for in the prior year, they would have had $14,000 more funding to carry forward. This $14,000 of cash legitimately belongs to index 34xxxx, since they are the ones who actually paid for the equipment in error. o  Calculate what remains in the Reserves account of the index that must give up the funds: •  To calculate what remains in the Reserves account, take the sum of 1900 and 1903. For example, if there is $20,000 in index 21xxxx, account code1900, but account code 1903 has -$8,000, you have $12,000 left in the Reserves account code that you can move [$20,000 -$8,000 = $12,000] Note that the +/-signs on revenue account codes are the opposite of the +/-signs on expense account codes. This $12,000 balance represents money that can be spent. Current Balances in 21xxxx: Index Rule Account Debit Credit Class Code Code o  21xxxx JE2 1900 20,000 o  21xxxx JE2 1903 8,000 . o  Net of the two account codes: 12,000 o  You need to move $14,000. This is $2,000 more than you have in the Reserves related account codes. •  First, move the $12,000 that you have in the Reserves account. .  Debit index 21xxxx, account code 1903, for 12,000 [you have ­$8,000 in there to start with]. You will now add -$12,000, for a total of -$20,000 when the Journal Voucher has posted. This equals the $20,000 you have in 1900. This is the most you can move from this account code. Credit the index getting the revenue for $12,000. .  Move the remaining $2,000 that you need to move with an allocation entry. Index  Rule Account Debit Credit Class Code Code o  21xxxx JE2 1903 12,000 o  34xxxx JE2 1903 12,000 o  Effect of entry on the account codes: 0 Note that the debit and credit for this entry into 1903 results in “zero” dollars being moved into or out of the account. This must always be true of a Reserves, allocation, or 8045 entry. Effect of entry on index 21xxxx: Index  Account Code Debit Credit o  21xxxx 1900 20,000 [existing] o  21xxxx 1903 8,000 [existing] o  21xxxx 1903 12,000 [this entry] o  Amount remaining in Reserves account codes: $ 0   Effect of entry on index 34xxxx: Index Account Code Debit Credit o  34xxxx 1900 o  34xxxx 1903 12,000 o  Amount of funding moved to 34xxxx: $12,000   Allocation Entry: .  Determine if this is the correct entry to make: o  You are moving revenue that is being allocated within the same Fund level 2 and Program Level 2, but to different indices. o  You are moving funding that is not in a Reserves account code. o  If you are moving clinical revenue to a subsidiary departmental index, see appendix 2 -Clinical Revenue Allocation Account Codes, and the related explanation. .  You will generally use account code 1660 as both the debit and credit for this entry.  Look in the account code listing [see appendix 2] at the other account codes. Select the account code that corresponds to the type of funding being allocated. . Your entry will always cause the total activity for the account code to net to zero. . Does the index (not account) have the dollar amount you wish to allocate, remaining in unexpended budget dollars? . In the example above, you will debit 21xxxx account code1660 for $2,000. You will credit the index receiving the funding for $2,000. Index  Rule Account Debit Credit Class Code Code o  21xxxx JE2 1660 2,000 o  34xxxx JE2 1660 2,000 o  Effect of entry on the account: 0   Total effect of these two entries on both indices: Index Rule Account Debit Credit Class Code Code o  21xxxx JE2 1903 12,000 o  21xxxx JE2 1660 2,000 .   Index  Rule Account Debit Credit Class Code Code o  34xxxx JE2 1903 12,000 o  34xxxx JE2 1660 2,000 There needs to be at least $2,000 in budgeted allocations and unexpended funds in index 21xxxx; otherwise the allocation portion of this entry cannot be made. Note that NO EXPENSE ACCOUNTS were affected, even though this is an expense correction from the prior year. Transfer Entry: .  Determine if this is the correct entry to make. o  Are you moving dollars that are being allocated to a different Fund level 2 and/or Program level 2?  Then you will do a transfer entry. o  You will use a transfer account code, between 11xx and 12xx. .  Use the appropriate account code to make the entry. No budget forward or allocation entries can be made that cross Fund level 2 codes, and/or Program level 2 codes. Example: Mary Smith’s research department VP has agreed to support a clinical outreach project with $5,000 of funding. The VP funding will come from Index 406009, Fund 3U0023, Program P161. The clinical outreach project is implemented by the Department of Family and Community Medicine Index 160010, Fund 3U0029, Program P171.  This support was not in the budget originally submitted. . Run report FORH008 for the two indices.  Follow the report guidelines to make the entry.  Use exactly the descriptive text printed on the report. . The entry: Actual: Index Rule Account Debit Credit JV Short Class Code Code Description 406009 JET 11E0 5,000 160025-11C0 160025 JET 11C0 5,000. 406009-11E0 Budget: Index Rule Account (-)Bud (+) Bud JV Short Class Code Code Description Decrease Increase 406009 BDT 11E0 -5,000 160025-11C0 406009 BDT 8060* -5,000 160025-8060* 160025 BDT 11C0 5,000 406009-11E0 160025 BDT 8060* 5,000. 406009-8060* * note that 8060 is a default account code.  Use the appropriate account code here. 8045 Interdepartmental Support Entry: .  The limit for 8045 entries is $20,000/year per index.  No single entry can exceed $5,000.  .  Sometimes funds need to be moved, but they cannot be made with a Reserves or Allocation entry. They are small enough to be within the 8045 guidelines. When this happens, you can sometimes do an 8045-Interdepartmental Support entry, instead of a transfer. .  This will sometimes occur when you are correcting prior year transactions. .  Example: Roger Jones has an Index 49xxx3, Fund 3U0023; Program P161 that needs to be closed. It has an existing loss balance of $87.52. It cannot be closed until the index balance is zero. The department wishes to close the index by funding the deficit with unrestricted department chair funds in Index 49xxx7, Fund 3U0303, Program P171. The department chair index is in a different level 2 Program and Fund than the index that needs to be closed. .  Roger submits the following entry: Index  Account Debit Credit o  49xxx7 8045 87.52 o  49xxx3 8045 87.52. This brings the 49xxx3 balance to zero, and the index can be closed. Budget Entries: . Budget entries must be in whole dollars.  No cents. . The index “giving” the funds [this debit entryis put into the Journal entry with a negative sign; the budget is going down for this account] must have enough money to cover the entry. [i.e., if the current budget is $9,000, and actual expenses are $500 and there is a $1,500 encumbrance, there is only $7,000 left ($9,000-$500-$1,500=$7,000) and only $7,000 may be moved]. .  REMEMBER: If you move funding out of (or into) an index, you must also move the same amount of expense out of (or into) the index.  The budget must stay in balance.  .  In the case of Reserves amounts, use account code 1901 and rule class BD4 to move funding from one index to another. If you wish to spend unbudgeted Reserves money that is sitting in 1900, you must budget the use of funding in account code1901. Refer to your Hyperion report for how much use of Reserves is currently budgeted. .  In the case of Allocation amounts which use 16xx account codes, use the SAME account code with a BD4 rule class code to move enough budget to cover the entry. You wish to move $3,000 of prior year actual expenses into the index as an allocation entry. You still anticipate the originally budgeted $2,000 in expense will occur later in the year.  You MUST move $1,000 of budget money to cover the $3,000 in expenses you are moving. The $1,000 added to the existing $2,000 will equal the $3,000 you are moving in. You SHOULD move $3,000 of budget money to cover the entire $3,000 of expense, and allow the current $2,000 budget amount to remain. This will cover the $2,000 of expenses expected later in the year. .  In the case of Transfer amounts that use account codes 11xx to 12xx, use the appropriate account code with a BDT rule class code to move enough budget to cover the entry. Use the FORH008 report to determine how to put in your budget entry. .  The deadline for all budget entries related to transfers is March 31st Example 1: A Department has an actual Reserves in a Public Service index of $25,000.  They intend to spend $15,000 of the balance in the current fiscal year. The budget entry, using the BD4 Rule Class Code, would be completed as follows: Index Account Code  Increase Decrease 3-XXXXX 1901 +15,000  Revenue increase 3-XXXXX 3100 + 5,000 3-XXXXX 3820 + 2,000 Expenses also increase $15,000 3-XXXXX 8060 + 8,000 Example 2: A Department has a negative actual Reserves in a Public Service index of -$15,000. They plan on making up $5,000 of that deficit during the current fiscal year. The budget entry, using the BD4 Rule Class Code, would be completed as follows: Index Account Code  Increase Decrease 3-XXXXX 1901 Revenue decrease -5,000 3-XXXXX 3100 -4,000 3-XXXXX 3820 Expense decrease -1,000 of $5,000 Common Journal Voucher Mistakes to Avoid: .  Do not use “allocate” in the text of a transfer journal entry. .  Do not use “transfer” in the text of an allocation journal entry. .  Creating a Reserves or allocation entry that crosses level 2 funds or level 2 programs. .  Submitting an allocation of Reserves journal entry that uses different account codes used in the same entry. .  Using allocation account codes that do not reflect the type of funding that is being allocated .  Trying to move a larger balance than what is available. .  Trying to move unrestricted prior year correcting entries in their original account code.  These must be moved in the Reserve account code [1903] as a debit and credit to the indices involved. .  Debits do not equal credits. .  Submitting allocation, Reserves or transfer entries in lieu of moving current year expense to the appropriate index. .  In budget entries, revenue does not equal expenditures. .  In budget entries, 16xx does not net to zero. .  In budget entries, the index and account code funds are being moved “from” does not have sufficient funds.  A negative balance CANNOT result. Flowchart -Transfer or Allocation? Run F Index Lookup No Hyperion report. Note the Fund and Program for each index.   TRANSFER Yes Is the program level 2 code the same for both indices? No No   Are the level 2 program codes within instruction & General? Yes TRANSFER Appendix 1-Allocation Entry Exceptions Fund level  Program Level  Exceptions  2  2  Instructional & General Programs  P09 through P14 allowable; however, cannot cross campuses.  Appendix 2-Account Codes  Reserves Account Codes  Account  Code  Title  Description  1900  Reserves  For System use only. Residual earned amount carried forward from previous fiscal year.  For Actuals only, not for Budget.  1901  Budgeted use of Reserves  Budgeted use of Reserves. The amount of the carry forward surplus or deficit that is planned to be spent or recovered in the current year.  1903  Change in Reserves  Used to move Reserves amount residing in account code 1900 (Reserves) in one index to another index.  The indices involved must be in the same Fund Level 2 or Program Level 2.  Account code 1903 must be used for the debit and credit in any such entry. Contact your accounting office if you have questions.  Allocation Account Codes  Account  Code  Title  Description  1600  Allocations Earned Revenue Gen  To allocate revenues that are credited to a School or College index but are “earned” by departments (Example: Course Fee Revenue) OR to allocate from department primary indices to secondary “faculty” indices.  1601  F&A Allocations  To allocate F&A revenues from a School or College to departments; Account code must equal zero.  1610  Allocations SOM Gen  To allocate Dean’s Funding revenues to departments.  1620  Allocations Subsidy Gen  Definition under review  1640  Allocations Pooled Allocations Gen  Allocation of I&G only.  Restricted to Budget office use.  1650  Allocations UNM Bond Proceeds Gen  Used to distribute UNM Bond Proceeds in Plant Funds from the Construction Project Index to the appropriate individual Construction Project.  1660  Allocations Other Gen  Allocations for general purposes not itemized above.  1661  Overhead-Internal Allocation  Definition under review  1665  Regent’s Reallocation  Allocation of the 1.1% Regents’ Tax (mandated by the Regents for Main Campus Unrestricted I&G, Public Service, and Research), decreasing I&G budget and actual allocations for FY 2006.  1666  Interdepartmental Allocations  Allocations within a department  Transfer Account Codes  Account  Code  Title  Description  1100  Trsfr To I G Gen  The debit, source of funds, or “transfer to” side of an entry for a movement of revenue to an Instruction and General Program Code Index from: a non Instruction and General Program Code index; an Instruction and General index from another Campus; or a Restricted Instruction and General index.  For tracking purposes, the offset index and account code must be included in the journal entry description and journal entries should be simple not compound.  1120  Trsfr From I G Gen  The credit, increase of funds, or “transfer from” side of an entry for movement of revenue from an Instruction and General Program Code index to: a non Instruction and General Program Code index; an Instruction and General Index from another campus; or a Restricted Instruction and General index.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the description field and journal entries should be simple not compound.  1140  Trsfr Contract Services Gen  DEFINITION UNDER REVIEW  1160  Trsfr To Student Social Cultura Gen  DEFINITION UNDER REVIEW  1180  Trsfr From Student Social Cultu Gen  DEFINITION UNDER REVIEW  11A0  Trsfr To Research Gen  The debit, source of funds, or “transfer to” side of an entry for a movement of revenue between Research level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  11C0  Trsfr From Research Gen  The credit, increase of funds, or “transfer from” side of an entry for a movement of revenue between Research level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  11E0  Trsfr To Public Service Gen  DEFINITION UNDER REVIEW  11F0  Trsfr From Public Service Gen  DEFINITION UNDER REVIEW  11H0  Trsfr To Internal Service Gen  DEFINITION UNDER REVIEW  11J0  Trsfr From Internal Service Gen  DEFINITION UNDER REVIEW  11L0  Trsfr To Student Aid Gen  DEFINITION UNDER REVIEW  11N0  Trsfr From Student Aid Gen  DEFINITION UNDER REVIEW  11P0  Trsfr To Auxiliaries Gen  DEFINITION UNDER REVIEW  11R0  Trsfr From Auxiliaries Gen  DEFINITION UNDER REVIEW  11T0  Trsfr To Athletics Gen  DEFINITION UNDER REVIEW  11V0  Trsfr From Athletics Gen  DEFINITION UNDER REVIEW  1200  Trsfr To Independent Operations Gen  DEFINITION UNDER REVIEW  1220  Trsfr From Independent Operations Gen  The credit, increase of funds, or “transfer from” side of an entry for a movement of revenue between Independent Operations level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  1240  Trsfr To Plant Fund Minor Gen  DEFINITION UNDER REVIEW  1260  Trsfr From Plant Fund Minor Gen  DEFINITION UNDER REVIEW  1280  Trsfr To Plant Fund Major Gen  The debit, source of funds, or “transfer to” side of an entry for a movement of revenue between Plant Fund Major Gen level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  12A0  Trsfr From Plant Fund Major Gen  The credit, increase of funds, or “transfer from” side of an entry for a movement of revenue between Plant Fund Major Gen level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  12C0  Trsfr To Renewal Replacement Gen  DEFINITION UNDER REVIEW  12E0  Trsfr From Renewal Replacement Gen  DEFINITION UNDER REVIEW  12F0  Trsfr To Debt Service Gen  DEFINITION UNDER REVIEW  12H0  Trsfr From Debt Service Gen  DEFINITION UNDER REVIEW  12N0  Unitized Trsfr To Endowments Gen  DEFINITION UNDER REVIEW  12N1  Not Unitized Trsfr To Endowments Gen  DEFINITION UNDER REVIEW  12P0  Unitized Trsfr From Endowments Gen  The credit, increase of funds, or “transfer from” side of an entry for a movement of revenue between Endowment level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  12P1  Not Unitized Trsfr From Endowments Gen  DEFINITION UNDER REVIEW  12R0  Trsfr To Agency Funds Gen  The debit, source of funds, or “transfer to” side of an entry for a movement of revenue between Agency level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  12T0  Trsfr From Agency Funds Gen  The credit, increase of funds, or “transfer from” side of an entry for a movement of revenue between Agency level one and or level two funds or between level two Program Codes.  For tracking purposes, the offset index and account code should be included in the journal entry description using the first 10 spaces of the Description field and journal entries should be simple not compound.  Clinical Revenue Allocation Account Codes Revenue Code  Distribution Code  Definition and Usage  0380  “FOM” revenue from UNM Medical Group to the School of Medicine (SOM) Clinical Departments  0381  Distribution of FOM revenue from department primary indices to secondary indices.  Account code must equal zero  0320  “Special Arrangements” revenue from UNM Medical Group to the School of Medicine (SOM) Clinical Departments  0321  Distribution of “Special Arrangements” revenue from department primary indices to secondary indices.  Account code must equal zero.  0330  Revenue generated  through Locum Tenens services (temporary primary care physicians) activities  0331  Distribution of Locum Tenens revenue from the Locum Tenens office to various SOM Clinical Departments.  Account code must equal zero.  0340  Revenue from University Hospital to the SOM  0341  Distribution of University Hospital revenue from department primary indices to secondary indices.  Account code must equal zero.  0350  CRTC patient revenue posted from the global billings  0351  Distribution of CRTC patient revenue to various SOM Clinical Departments.  Account code must equal zero.  0370  Revenue generated by Specialty Extension Services (temporary physician specialists) activities  0371  Distribution of Specialty Extension Services revenue from the Specialty Extension Services office to various SOM Clinical Departments.  Account code must equal zero.  The allocation of clinical revenue from a department to a secondary index (faculty specific index) is done from the distribution account code that corresponds to where the  revenue was initially recorded. As with all allocation entries, the entry must net to zero.  The amount debited out of the primary account must equal the amount credited to the secondary account/indices.  For example, index 7xxxx0 received FOM distributions in the amount of $10,000 in April. The departmental revenue distribution for specific faculty indicates that 7xxxx1 should receive $4,000 and 7xxxx2 is entitled to $3,000.  The department retains $3,000 for administrative operations. Account Code  Index  Debit(+)  Credit(-)  0381  7xxxx0  $7,000  0381  7xxxx1  $4,000  0381  7xxxx2  3,000  Totals:  (+)$7,000  (-)$7,000  = $0    Appendix 3-HSC Unrestricted Fund Structure UPDATED 9/6/07 HSC Unrestricted Fund Structure Level 1  Level 2  Level 3  3U1  HU Instruction and General  3U1G  HU General I and G  3U0044  HU I and G  3U2  HU Research  3U2G  HU General Research  3U0023  HU Research General  3U0047  HU F&A  3U0053  Genomics Software  3U0081  HU Endowed Spending Research  3U0298  UNM Tumor Registry (SEER) Billing  3U0299  HU Research Residuals  3U0312  HU CRTC State Appropriations  3U3  HU Education  3U3G  HU General Education  HU Non Endowed Spending  3U0002  Education  3U0003  HU Endowed Spending Education  3U0005  HU Housestaff Operations  3U0050  HU CME Conferences  3U0080  HU SOM Student Fees  3U0084  HU EMS Academy Billing  3U0089  HU Housestaff Billings  3U0123  HU Housestaff UNMH AR  3U0300  HU Education General  3U4  HU Clinical Service  3U41  HU UPA  3U0032  HU UPA Fom  3U0033  HU UPA Special Arrangements  3U42  HU UNMH  3U0006  HU Childrens Psychiatric Hospital  3U0007  HU Carrie Tingley Hospital  3U0011  HU UNMH AR & AP General  3U0034  HU UNMH-SOM General  3U56  HU General Clinical Service  HU Non Endowed Spending  3U0001  Research  3U0004  HU Medical Investigator Billing  3U0029  HU Clinical Residuals  3U0030  HU Locum Tenens Billing  3U0031  HU Specialty Ext Services  3U0038  HU Neonatology Transport Billing  3U0048  HU Peds Onc Patient Billing  3U0051  HU VA Contracts  3U0054  HU Clinical Service Contracts  3U0064  HU CRTC Patient Billing  HU Non Endowed Spending Clinical  3U0301  Service  HU Endowed Spending Clinical  3U0302  Service  3U0303  HU Clinical Service General  3U5  HU Other  3U53  HU HSC Monitoring Funds  1U0277  IU-System Clearing HSC AR  3U0008  HU HSC Monitoring  3U0037  HU Cost Reimbursement Billing  3U0046  HU Payroll Suspense  3U0056  HU Payroll Accrual Monitoring  3U0108  HU Allowance C&G A R  3U0280  HU HSC Accrued Annual Leave  3U0282  HU HSC Insurance Reserve  3U0292  HU HSC Travel Advances  3U0294  HU HSC Facility Planning  3U54  HU Internal Services  3U0014  HU Program Evaluation  3U0015  HU Experimental Biotech  3U0020  HU Animal Resource Facility  3U0035  HU Internal Services Contingency  3U0036  HU PPD Maintenance & Planning  3U0049  HU HRRC Industry Revenue  3U0055  HU DNA Services  3U0057  HU EBL Services  3U0058  HU BRAIN Center  3U0059  HU Ctr for Development & Disability  3U0103  HU Mass Spectrometry  3U0105  HU Niehs FC 4  3U0306  HU Biomedical Communications  3U0313  HU Radiology Services  3U55  HU Petty Cash and Deposit Funds  3U0109  HU Pediatrics Development  3U0110  HU EMS Academy  3U0111  HU Dental Programs  3U0112  HU Pediatrics Hematology  3U0113  HU College of Nursing  3U0114  HU Pharmacy  3U0115  HU Petty Cash Fund  3U0118  HU Medical Center Library  3U0121  HU Duplication Cash  3U0283  HU Mental Health Center  HU Teacher & Ed Development  3U0295  Workshop  3U0296  HU NBICO Family Emergency Fund  HU Internal Services ­ 3U57  Shared Facilities  3U0016  HU Flow Cytometry  3U0017  HU Kugr Genomics  3U0022  HU Florescent Microscopy  3U0040  HU Electron Microscopy  3U0082  HU Proteomics  3U0307  HU Bioinformatics  3U0308  HU Biostatistics  3U0309  HU Medical Informatics  3U0310  HU Tissue Banking  3U0311  HU Experimental Therapeutics  3U5G  HU General Other  3U0106  HU Student Aid    Main Campus Unrestricted Fund Structure UPDATED 07/1/08 Level 1 Level 2 Level 3 MU Instruction & 2U1 General 2U1G MU General I & G 2U0224 MU I & G 2U2 MU Research 2U2G MU General Research 2U0005 MU Department Research 2U0006 MU Idc 2U0237 MU IDC Recovery for Special Program 2U3 MU Public Service 2U3G MU General Public Service 2U0007 MU Non Endowed Spending 2U0016 MU Vp Academic Affairs 2U0203 MU Public Service 2U0204 MU KUNM FM 2U0205 MU Inst & Conf Continuing Ed 2U0206 MU Summer Professional Development 2U0207 MU Summery Story of NM 2U0208 MY Summer Personal Enrichment 2U0209 MU Summer Extension 2U0210 MU Summer Independent Study 2U0211 MU Summer Conference Center 2U0212 MU Summer Computers 2U0213 MU Deferred Tuition-San 2U0214 MU Dental Continuing Ed 2U0215 MU Ethnobiology Conference 2U0216 MU Philosophy Internation 2U0217 MU Hardwood Foundation 2U0218 MU UNM Press 2U0219 MU Accounts Receivable Lobo 2U0220 MU American Studies 2U0221 MU Maxwell Museum Publication 2U0222 MU Architecture Crd 2U0223 MU Knme Tv Public Service 2U0238 Deferred Comp Clearing 2U0247 112380-Accessibility Services 2U0252 MU Self-Insurance Reserve Level 2 Level 3 2U5 MU Other Institutional Activities MU 2U51 Auxiliaries 2U0077 MU Bookstore AR 2U0078 MU Bookstore 2U0079 MU Golf Courses 2U0080 MU La Posada Dining 2U0081 MU Citation Allow Ps 2U0082 MU Housing Business Services 2U0083 MU Popejoy Hall Pemg 2U0084 MU Yound Ranch Property 2U0085 MU Parking and Transportation Svcs 2U0086 MU Taos & Lawrence Ranch 2U0087 MU Concessions 2U0088 MU Copy Media Services 2U0089 MU Facilities Rental 2U0090 MU Student Family Housing 2U0091 MU Art and Art History Paper Closet 2U0092 MU UNM Tennis Club 2U0093 MU Tennis Club UBIT 2U0094 MU Maxwell Museum 2U0095 MU Maxwell Zuni 2U0096 MU Maxwell Gift Shop 2U0097 MU Art & Maxwell Store 2U0098 MU Art Museum Shop 2U0099 MU Art Museum Shop Prod 2U0100 MU Accounts Receivable Copy Service 2U0101 MU Library Copy Center 2U0102 MU Lodestar Gift Shop 2U0103 MU Food Services 2U0104 MU Prepaid Expenses N 2U0105 MU Student Fees Designation 2U0106 MU Lodestar Operation 2U0107 MU UNM Ticketing Services 2U0108 MU Maxwell San Felipe 2U0109 MU Student Health 2U0110 MU NM Union UBIT 2U0111 MU NM Union 2U0112 MU Nsf Conf Ms 2U0234 MU Lobo Cash 2U0248 MU Auxiliaries Contingency 2U0258 Harwood Gift Shop 2U52 MU General Athletics 2U0025 MU Athletics 2U53 MU Student Social and Cultural 2U0001 MU Other Student Social Cultural 2U0002 MU Book Co-op 2U0003 MU Other Student Social Cultrural 2U0004 MU Debate Team Level 2 Level 3 2U54 Internal Services 2U0113 MU Microprobe Sem Lab 2U0114 MU ECRF OTV Cost Center 2U0115 MU Mathematics & Statistics 2U0116 MU Mathematics & Statistics Kyner 2U0117 MU Stat Consulting Clinic 2U0118 MU Physics Shops 2U0119 MU Media Tech Service 2U0120 MU SIMS Laboratory 2U0121 MU Ce Shop Account 2U0122 MU Ce Hydraulics Lab Fee 2U0123 MU NMERI Auto 2U0124 MU MTTC Cleanroom Operation 2U0125 MU NMERI Recharge 2U0126 MU NMERI Computer Cost 2U0127 MU TEM Laboratory 2U0128 MU Electrical Wood Metal Shop 2U0129 MU Mechanical Engineering Shop 2U0130 MU Academy for T&C 2U0131 MU Contingency Internal Services 2U0132 MU Employee Occupational Health Svc 2U0133 MU Continuing Ed Workforce Labs 2U0134 MU Cars 2U0135 MU International Scholarships 2U0136 MU Chemistry Research Lab Supplies 2U0137 MU Chemistry & Nuclear Lab 2U0138 MU X Ray Structure 2U0139 MU Paleomagnetism Lab 2U0140 MU Analytical Chemistry Lab 2U0141 MU X Ray Diffraction Lab 2U0142 MU Unix Computer Facility 2U0143 MU Stable Isotope Lab 2U0144 MU Icp Ms Lab 2U0145 MU Quaternary Lab 2U0146 MU Radiogenic Iso Lab 2U0147 MU NMR Facility 2U0148 MU HR Benefits Cobra 2U0149 MU X Ray Photoel Spectr 2U0150 MU Xrd Lab 2U0151 MU SAXS 2U0152 MU Pcl 2U0153 MU MCSC Materials Characterization 2U0154 MU Cirt 2U0155 MU Cirt 2U0156 MU Supercomputing 2U0157 MU Hardware Maintenance 2U0158 MU Incubator Lab Maintenance 2U0159 MU Information Tech 2U0160 MU Ctr Micro-Engineering Ceramics 2U0161 MU Rodey Theatre Rental Level 2  Level 3  2U0162 2U0163 2U0164 2U0165 2U0166 2U0167 2U0169 2U0170 2U0171  MU MRC Computer Charges MU Temporary Employee MU Excess Sick Leave MU Retiree Health Benefits MU Dependent Tuition Program MU Employee Tuition Remission MU Bookstore Wholesale MU Telecommunications MU Taxation UBIT GGRT  2U0172 2U0173 2U0174 2U0175 2U0176 2U0177 2U0178 2U0179 2U0180 2U0181 2U0182 2U0183 2U0184 2U0185 2U0186 2U0187 2U0188  MU Safety Health & Environment MU Internal Med EHPP MU Chtm Crystal Growth MU Materials Management MU Payroll Tax Subsidy MU Chtm Clean Room MU UNM Copy Center MU Casaa Project Evaluation MU Cng Fueling Center MU Materials Management MU Printing Plant MU Sub Campus Images MU Quick Copy Centers MU Materials Management MU Premiums Risk Management MU Radioactive Waste Disposal MU Hazardous Chemical Waste  2U0189 2U0190 2U0191  MU Ticket Discounts MU Pes Midas MU Casaa Data Services  2U0192 2U0193 2U0194 2U0195 2U0196 2U0197 2U0198 2U0199 2U0200 2U0201 2U0202 2U0229 2U0230 2U0231 2U0232 2U0233 2U0236 2U0239 2U0240 2U0241 2U0242  MU Casaa Internal Services MU Ppd Engineering Services MU Auto Rental Fleet MU Ppd Alarms MU Cogeneration Plant MU Ford Utilities MU Ppd Automotive MU Ppd Custodial Services MU Ppd Engineering Services MU Maui Project MU Ppd-Remodeling MU High Pressure Exp MU IFL INTERFEROMETRIC LITHOGRAPHY MU MBE-MOLECULAR BEAM EPIT0XY MU Special Program Services MU Banner Tax MU Catastrophic Leave MU LIDAR Lab MU PPD Maintenance and Planning MU PPD Environmental Services MU PPD Work Control  Level 2 Level 3 2U0243 MU Employee and Org Development 2U0244 MU Univ Library Internal Svcs 2U0245 MU Continuing Education 2U0246 MU Confocal Laser Scanning Lab 2U0249 ITS Computing Services 2U0250 ITS Communications Network Services 2U0253 Capital Projects Ofc 2U0254 COE Publication Center 2U0255 MU-Benefits 2U0256 CHTM-Technical Support 2U0258 A&S Biology Service Centers 2U0260 EDAC Internal Services 2U0262 MU NMIRA Laboratories 2U5G MU General Student Aid 2U0008 MU Endowed Spending 2U0226 MU Student Aid 2U0261 Tribal Student Aid 2U55 MU Other 2U0009 MU Masters Of Management 2U0010 MU Santa Fe Graduate Center 2U0011 MU Accepted Applicants 2U0012 MU Books & Serials 2U0013 MU Books From Mexico 2U0014 MU Library Prepaid 2U0015 MU Books Argentina 2U0017 MU Ims 2U0018 MU Photo Service Ms 2U0019 MU Special Programs Int 2U0020 MU Arts & Sciences 2U0021 MU Anthropology 2U0022 MU Chemistry Breakage C 2U0023 MU Economics Rac 2U0024 MU English Key Deposits 2U0025 MU London Semester 2U0026 MU Astrophysis 2U0027 MU Psychology 2U0028 MU Psychology Gluck 2U0029 MU Psychology Dougher 2U0030 MU Psycholog 2U0031 MU Communications & Journalism 2U0032 MU German Summer School 2U0033 MU Speech & Hearing Science 2U0034 MU Linguistics Petty Cash 2U0035 MU Institute for Public Policy 2U0036 MU Computer Usage 2U0037 MU Womens Studies 2U0038 MU Institute Criminal Justice 2U0039 MU Media Tech Svc Cashd 2U0040 MU Architecture & Planning 2U0041 MU Hppelp Therapy Pool Level 2  Level 3  2U0042 2U0043 2U0044 2U0045 2U0046 2U0047 2U0048 2U0049 2U0050 2U0051 2U0052 2U0053 2U0054  MU Family Development Program MU Petty Cash-Soe Copy Center MU Chemical & Nuclear Engineering MU Ce Key Accounts MU Eece Key Deposits MU Mechanical Engineering MU Mfg Engineering Petty Cash MU NMERI MU Minority Engineering Petty Cash MU Cs Key Deposits MU Space Nuclear Power Systems MU Cfa Key Deposits MU Tamarind Institute  2U0055 2U0056 2U0057 2U0058 2U0059 2U0060 2U0061 2U0062 2U0063 2U0064 2U0065 2U0066 2U0067 2U0068 2U0069 2U0227  MU Clinical Operations-Law MU Zimmerman Fiscal Service MU General Library Key Deposits MU General Library Key Deposits MU Recreational Services MU Outreach Services MU Student Fees MU Police Petty Cash MU Admission Petty Cash MU UNM Child Care Center MU Student Publications MU Physical Plant MU Maui High Perform Computing Ctr MU Casaa MU Casaa Crb Petty Cash MU Political Science Pc  2U0228 2U0235 2U0251 2U0259  MU Midweek Movie Pc MU Books From Brazil MU Law Library MU New Media & Ext Learn NMLN  2U0263  MU IPL-JEC Fees  Appendix 4-FOAPAL Elements   FOAPAL Elements -Quick Reference Guide Begins Program FUND PROGRAM DESCRIPTION ACCOUNT CODES With Level 2 Institutional Funds 1 Instruction and General OPERATING REVENUE Begins With Instructional and General Revenue P09 Tuition Revenue 01 Main Campus 2 Instruction Unrestricted Ex 10 P10 Student Fees 02 Main Endowments 2E Sponsored Instr Restr Ex 10 P10R Mandatory Student Fees 02Z1 Main Plant Funds 2P Academic Support Unrestr Ex 11 P11 Patient Services 03 Main Restricted 2R Sponsored Acad Support Restr Ex 11 P11R Grants & Contracts 04 Main Unrestricted 2U Student Services Ex 12 P12 Sales & Services 05 Sponsored Student Srvc Restr Ex 12 P12R INTERNAL SALES HSC Campus 3 Institutional Support Ex 13 P13 (USED ONLY IN P18 INTERNAL SERVICES) HSC Endowments 3E Sponsored Inst Support Restr Ex 13 P13R Appropriations 07(number) HSC Plant Funds 3P Operations and Maintenance Ex 14 P14 Sales & Services 07Z HSC Restricted 3R Other Operating Revenue 08 HSC Unrestricted 3U NON-OPERATING REVENUE Student Social and Cultural Ex 15 P15 Bond Revenue 09 Gallup Campus 4 Research Unrestr Ex 16 P16 Gifts, Investment Income & Gallup Endowments 4E Sponsored Research Restr Ex 16 P16R Other 10 Gallup Plant Funds 4P Transfers 11 or 12 Gallup Restricted Funds 4R Allocations Non Sponsored Pub Svc Unrestr Ex 17 P17 Gallup Unrestricted 4U Sponsor Public Service Restr Ex 17 P17R Earned Revenue 1600 F&A Allocation 1601 Los Alamos Campus 5 Internal Services Ex 18 P18 (USED ONLY IN P16 Research) Los Alamos Endowments 5E Allocations SOM Gen 1610 Los Alamos Plant Funds 5P Student Aid Unrestr Ex 19 P19 Pooled Allocation 1640 Los Alamos Restricted Funds 5R Sponsored Student Aid Restr Ex 19 P19R (Only used by depts. For original budget) Los Alamos Unrestricted 5U UNM Bond Proceeds 1650 Auxiliaries Ex 20 P20 General Allocations 1660 Valencia Campus 6 Overhead Internal 1661 Valencia Endowments 6E Athletics Ex 21 P21 (USED ONLY IN P16 Research) Valencia Plant Funds 6P Regent’s Reallocation 1665 Valencia Restricted Funds 6R Reserve Independent Operations Ex 22 P22 Valencia Unrestricted 6U Reserves 1900 Other Institutional Programs P50 (NOT USED by Depts EVER) Taos Campus 7 Property Plant and Equipment P501 Budgeted use of Reserves 1901 Taos Endowments 7E Agencies P502 (BUDGET PURPOSES ONLY) Taos Plant Funds 7P Student Loan Programs P503 Change in Reserves 1903 Taos Restricted Funds 7R Endowment Programs P504 (MOVING RESERVES ONLY) EXPENSES Taos Unrestricted 7U Salaries 20 UNM Hospital 8U Payroll Benefits 21 Other Expenses 31 thru 99 Interdept Support 8045 Budget Contingency 80E0 29 Appendix 5-FORH008A -Transfer ** * Note that 8060 is a default expense account code. You cannot remove budgeted funds from any account code that does not have a budget balance. Replace 8060 with the expense account code that has the budgeted funds you are moving. Replace 8060 on the other side of the entry with the account code(s) where you intend the funds to be spent. FORH008A -Allocation ** * Note that 8060 is a default expense account code. You cannot remove budgeted funds from any account code that does not have a budget balance. Replace 8060 with the expense account code that has the budgeted funds you are moving. Replace 8060 on the other side of the entry with the account code(s) where you intend the funds to be spent. Appendix 6 -HSC Plant Funds Transfer Form This Transfer to Plant Form can be found at the Financial Services HSC Budget and Administration website [http://hsc.unm.edu/about/budget/budget.shtml], on the HSC Budget Office Forms tab. Appendix 7 – Checklist for Reserves/Allocation/Transfer Entries .   Is this a current year or a prior year expense I am correcting? .   If it is prior year correction, am I using the Reserves account code? .   If it is current year correction, am I using the correct expense account codes?   .   Does the giving [“from”] index have an adequate remaining balance? .   Is this budgeted? .   If not, have I included a budget entry? .   Is my budget entry in whole dollars? .   If this is budgeted, does the index have an adequate remaining balance to cover the actual dollars moved?   .   Have I used the Hyperion Report FORH008A? This report will tell you whether you have an allocation or transfer entry, what account codes to use, and what JV subject line text to must be used (Very important for transfer entries). .  If I have used this report, have I corrected the 8060 account to the correct expense account code in all instances, if appropriate?